Kejuruteraan Asastera Bhd (KAB), soon to be renamed Kinergy Advancement Bhd, reported a significant jump in net profit for the first quarter of FY2023.
The company’s profit increased over four times to RM2.43 million compared to RM590,000 in the previous year, primarily driven by higher contributions from its sustainable energy solutions (SES) segment.
Despite a decline in revenue to RM42.76 million from RM52.98 million, KAB’s SES segment saw a revenue growth of 38.6% to RM5.56 million, resulting in a segment profit increase of over seven times to RM2.68 million.
This was attributed to improved performance of SES assets and higher tariffs.
On the other hand, the mechanical and electrical engineering (M&E) segment experienced a decline in revenue to RM37.37 million from RM89.96 million, but segment profit increased by 14.4% to RM1.69 million.
The group mentioned that the industry’s profit margin was affected by the rise in copper and iron ore prices.
In a statement, KAB group managing director Datuk Lai Keng Onn said the improvement in the group’s net profit is a testament to the board’s conscious and calculated decision in pivoting into the SES segment.
“Our efforts in the journey into the SES segment have paid off and we are poised to further accelerate our expansion and capture more opportunities in this fast-growing industry. This milestone quarterly result reflects the immense potential that lies ahead, and we are positively optimistic of our coming year prospects, in line with our ongoing acquisitions which are slated to be completed by this year,” he said.
The group also said its shareholders have passed the special resolution to rename Kejuruteraan Asastera Bhd to Kinergy Advancement Bhd at a virtual annual general meeting today.
The company’s share price closed at 32 sen, reflecting a 3.23% increase from the previous trading day and valuing the company at RM578.53 million. –TMR