KUALA LUMPUR (March 24): Kawan Renergy Bhd (KL:KENERGY) reported a 17.3% year-on-year (y-o-y) increase in net profit for the first quarter ended Jan 31, 2025 (1QFY2025), rising to RM4.93 million from RM4.2 million last year, mainly driven by higher gross margins in its industrial process plants.

Quarterly revenue saw a significant 47% y-o-y jump to RM29.3 million from RM19.9 million, due to increased recognition of progress milestones in its industrial process plant job contracts, the company said in a filing with the local stock exchange.

Kawan Renergy did not declare any dividend for the quarter in review.

Going forward, Kawan Renergy aims to continue its revenue and earnings growth by progressing on its RM100.3 million order book as of the end of January 2025 and securing new contracts. It also plans to expand its power generation business and strengthen long-term revenue by building a 2MW biomass power plant.

“We are delighted to start the new financial year on a high note, with confidence in sustaining this earnings trend,” said Kawan Renergy managing director Lim Thou Lai, adding the group anticipates a higher order book, driven by the country’s robust data centre project pipeline in 2024.

The National Energy Transition Roadmap (NETR), which supports renewable energy adoption, presents another positive factor for Kenergy’s business, Lim said.

“The group will focus on securing more job opportunities following its recent production process upgrades, which have further enhanced its technical capabilities and cost competitiveness,” he added.

Shares in Kawan Renergy, which was listed in May last year, closed 2.5 sen or 3.9% lower at 62.5 sen on Monday, giving the company a market capitalisation of RM343.8 million. Its share price has more than doubled from its initial public offering price of 30 sen.