KUALA LUMPUR (May 30): Kejuruteraan Asastera Bhd (KAB), soon to be renamed Kinergy Advancement Bhd, saw its net profit for the first quarter ended March 31, 2023 (1QFY2023) jump over four times to RM2.43 million from RM590,000 a year ago, thanks to higher contribution from its sustainable energy solutions (SES) segment.

Earnings per share for the quarter amounted to 0.13 sen, up 0.1 sen from a year earlier. The profit improvement came despite lower revenue of RM42.76 million compared to RM52.98 million in the previous year.

The group has two main business segments, namely SES and mechanical and electrical engineering (M&E).  

Its SES segment's revenue grew 38.6% to RM5.56 million in 1QFY2023 compared to RM4.01 million in 1QFY2022, which boosted segment profit by over seven times to RM2.68 million from a mere RM304,000 previously. The group attributed the better segmental performance to the improved performance of its SES assets and higher tariffs.

The group's M&E segment, meanwhile, saw revenue fall by 23.7% to RM37.37 million from RM48.96 million, but segment profit increased by 14.4% to RM1.69 million from RM1.47 million. The group said the industry's profit margin is still affected by the hike 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 on Tuesday (May 30).

Its share price ended the day at 32 sen, up 3.23% from the previous trading day. This values the company at RM578.53 million.