KAB executive deputy chairman and group managing director Datuk Lai Keng Onn.
KUALA LUMPUR: Kinergy Advancement Bhd
(KAB) expects stronger contributions to revenue and profit growth in the upcoming quarters, projecting sustained momentum that could see a doubling of 2023’s results.
“The group remains firmly focused on meeting its financial year ending Dec 31, 2024 (FY24) targets, and its scalable business model supports a bullish outlook for exceeding past performance, with a substantial uplift in profits expected in FY25.
“With strategic positioning for long-term value creation and ongoing expansion efforts, KAB’s future profitability appears well-supported, contingent on the successful execution of upcoming developments. This trajectory points toward a more robust and profitable outlook for the group,” executive deputy chairman cum group managing director Datuk Lai Keng Onn said in a statement.
In the second quarter ended June 30 (2Q), KAB’s net profit rose 66.1% to RM5.6mil, or earnings per share of 0.28 sen against RM3.3mil, or 0.19 sen in the same corresponding period last year.
Revenue, however, fell 7.2% to RM41.8mil from RM45.1mil a year prior.
For the first half, it posted a higher net profit of RM10.5mil on revenue of RM83.9mil.
KAB said since 2023, sustainable energy solutions (SES) reported substantial growth with consistent performance improvements. In the first half of the current fiscal year, the segment generated RM46.14mil in revenue and RM14.2mil in operating profit, a significant increase from RM12.9mil in revenue and RM6.4mil in segment results from the previous year.
“Expanding on our 2Q outlook, KAB anticipates a continued upward trajectory in its financial performance, building on the momentum established since 2023 and proven in this first half of FY24,” Lai said.
The SES segment, which saw RM2.7mil profit growth in 2022, has become central to the group’s strategy, contributing over RM10mil in 2023’s core earnings quadrupling the previous year.
“With two consecutive quarters of on-target results in FY24, KAB is making strides in securing both local and regional developments, strengthened by strong state partnerships. I am confident that ongoing projects will come to fruition, boosting our orderbook as we drive towards our ambitious targets for 2025,” Lai said.
