KUALA LUMPUR (Aug 20): Kinergy Advancement Bhd (KL:KAB) net profit grew 66% to RM5.57 million in the second quarter that ended June from RM3.35 million a year ago, due to improved margins thanks to new contributions under its sustainable energy solutions (SES) segment.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) rose to 0.28 sen from 0.19 sen, according to the energy and engineering solutions provider's bourse filing on Tuesday.

Quarterly revenue declined to RM41.8 million from RM45 million a year ago.

The group recorded a higher gross profit of RM12.16 million for the current quarter compared to RM10.73 million in the preceding quarter due to higher contributions from the SES segment with higher project margins.

For the first half of FY2024, net profit almost doubled to RM10.5 million from RM5.78 million a year ago due to a fourfold increase in revenue within the SES segment.

Revenue was RM83.9 million, down from RM87.84 million a year ago.

There was no dividend declared during the quarter under review.

“I am confident that our current projects will meet expectations and that we will secure additional sustainable energy development opportunities, further enhancing our earnings profile and driving even greater profit levels,” Datuk Lai Keng Onn, executive deputy chairman and group managing director of KAB, said in a statement.

Expanding on its Q2 outlook, Lai said KAB anticipates a continued upward trajectory in its financial performance moving forward.

"The SES segment, which saw RM2.7 million in profit growth in 2022, has become central to the group’s strategy, contributing over RM10 million in 2023’s core earnings, quadrupling the previous year,” he added.

As of June 30, 2024, KAB’s order book for its engineering and SES segments stood at approximately RM137 million and RM759 million, respectively.

Additionally, the group is bidding for tenders worth around RM160 million in engineering and a substantial RM2.89 billion in SES.

The group said it will continue to focus on the following future plans and business strategies for future growth and expansion of its business, in particular expanding its energy solutions and customer base in the energy sector, replenishing its order book, and venturing into neighbouring Asean countries.

KAB shares were unchanged at 33 sen, valuing the company at RM656 million.