KUALA LUMPUR (May 25): Kelington Group Bhd (KL:KGB) posted a 14.04% increase in first-quarter net profit to RM30.39 million from RM26.65 million a year earlier, driven by higher profit margins.

The gross profit margin in the quarter ended March 31, 2026 expanded to 30%, aided by a 6.55% decline in production costs which offset higher administrative expenses as well as foreign exchange losses.

Quarterly revenue rose marginally to RM270.43 million from RM270.28 million a year ago, according to the group's bourse filing on Monday. The growth was tempered by a seasonal slowdown and shorter working periods due to festive seasons during the quarter.

The group declared a first interim dividend of three sen per share, to be paid on July 10.

Singapore was the group's largest market, contributing 40% of total revenue, followed closely by Malaysia at 31.52% and China at 18.17%. Taiwan, Germany, and other markets collectively contributed the remaining 10.32%.

Looking ahead, Kelington is expanding into new geographical markets, notably India. The group secured a landmark contract worth RM413.7 million in March, bringing its outstanding order book to RM1.92 billion. Under this project, the group will deliver a turnkey gas distribution system for India's first pure-play semiconductor wafer fabrication facility in Gujarat.

Kelington shares closed up eight sen or 1.1% at RM7.33 on Monday, valuing the group at RM6.32 billion.