KUALA LUMPUR (June 7): Kejuruteraan Asastera Bhd (KAB) said the company's change of name to Kinergy Advancement Bhd took effect on June 2 following the receipt of the relevant notice from the Companies Commission of Malaysia.
It said the new name, which was proposed on April 6, signifies the company's commitment to expand its sustainable energy solutions (SES) business regionally.
The one-stop energy and engineering solutions provider said “Kinergy” is a fusion of two powerful words, kinetic and energy.
“It symbolises the motion, force and momentum that is generated when the group takes action to drive positive change and progress toward its goals.
“Advancement, on the other hand, represents its commitment to continuous improvement and progress,” KAB said in a statement on Wednesday (June 7).
KAB owns a suite of sustainable energy assets under its SES segment, with its current assets including co-generation and waste heat recovery plants, and solar photovoltaic systems.
The company has several acquisitions lined up to further bolster its SES portfolio, namely the acquisition of a biogas plant and a mini hydroelectric power plant in Indonesia. KAB is also set to develop and operate a gas-fired power plant through its joint venture with Petronas Gas Bhd valued at RM230 million, which represents the group’s largest SES endeavour to date.
"The group’s SES segment has been on a strong growth trajectory, contributing 32% to the overall profit after tax of the group's profitable segments in the year 2022 and more notably registered a 780.9% year-on-year increase to RM2.68 million in the first quarter of 2023 (1QFY2023) from RM0.30 million in the previous year's corresponding quarter.
"On the sustainability front, KAB has started embarking on its net zero journey in 2022 with a target of 50% greenhouse gas emissions savings in the next year from its SES asset portfolio. This is further reflected in the group's present environment, social and governance (ESG) rating of three out of four stars in the FTSE Russell ESG, which it has held for the last two consecutive years," the company said.
KAB group managing director Datuk Lai Keng Onn added: "We have made significant strides in our SES segment over the years and together with its strong financial performance thus far, we are confident that the SES segment will underpin the group’s continued growth moving forward."
Shares in KAB closed up 1.5 sen or 4.92% at 32 sen on Wednesday, valuing the company at RM569.52 million.