KINERGY Advancement Bhd has delivered a stellar 2Q FY2026 ended June 30, 2026 with its net profit having jumped 39.4% year-on-year (yoy) to RM9.05 mil (2Q FY2025: RM6.49 mil) while its revenue firmed 12% yoy to RM109.38 mil (2Q FY2025: RM97.73 mil).
For the 1H FY2026 period, the one-stop sustainable energy and engineering solutions specialist saw its net earnings spiralled 29% yoy to RM16.43 mil (1H FY2025: RM12.74 mil) while its revenue edged up 27.1% yoy to RM211.42 mil (1H FY2025: RM166.3 mil).
Moreover, the group’s total liquid assets during the period under review grew 43.6% to RM168.8 mil with its net gearing having halved to 0.25 times (from 0.49x).
The performance extends Kinergy’s track record of double-digit yoy earnings growth with its reported net profit having grown at double-digit rates across every quarter since 1Q FY2024.
More importantly, earnings growth is increasingly being accompanied by stronger liquidity and balance-sheet capacity, thus giving the group greater flexibility to execute and scale its three-pillar energy platform.
‘Substantial forward visibility’
The group’s growth remained focused on the Sustainable Energy Solutions (SES) segment which grew 50.5% yoy to RM170.7 mil and now accounts for more than 80% of group revenue driven by active execution of specialised energy EPCC (engineering, procurement, construction and commissioning) projects in Sabah and Labuan.
Traditional Engineering activity was lighter at RM40.4 mil for 1H FY2026 as legal M&E (mechanical & electrical) projects reached end-stage cost recognition but the group’s tender pipeline recovered sharply to RM383.0 mil from RM104 mil in the preceding quarter.
“This half shows Kinergy converting its engineering foundation into two areas simultaneously – recurring earnings growth and balance sheet capacity,” commented Kinergy’s group managing director Datuk Dr Lai Keng Onn.
“Halving our gearing while growing pre-tax profit by more than 30% gives us genuine flexibility to fund our order book and tender pipeline on our own terms rather than being constrained by them.”
Added Lai who is also the group’s deputy chairman:
Every one of our three segments – EPCC, renewable energy (SES) and independent power producer (IPP) – draws on the same engineering discipline we’ve built over nearly three decades.
“Each is now reaching a scale where it deserves to be assessed against its own listed-peer benchmark rather than a single blended group multiple.
Forward visibility remains substantial. As of end-June 2026, Kinergy’s secured order book stood at approximately RM1.14 bil (RM93 mil engineering; RM1.05 bil SES) against an active tender pipeline of RM3.08 bil (RM83 mil engineering, RM2.70 bil SES).
The group continues to evaluate larger scale RE (renewable energy) opportunities, including large-scale solar, battery energy storage system (BESS) as well as adjacent infrastructure opportunities linked to data centres.
This broadens Kinergy’s participation across the energy value chain, refreshes its opportunity pipeline and creates multiple demand-led growth pathways across its three core pillars – EPCC, RE (SES) and IPP.
At 4.46pm, Kinergy was unchanged at 42.5 sen with 8.58 million shares traded, thus valuing the company at RM929 mil. – Aug 26, 2026
