KUALA LUMPUR (Aug 20): Kelington Group Bhd (KL:KGB) reported a 25.7% jump in its second-quarter net profit from a year ago, driven by stronger revenue contributions from its key projects and a reversal of impairment relating to its Taiwan projects.

Net profit for the quarter ended June 30, 2026 (2QFY2026) rose to RM41.34 million from RM32.89 million in 2QFY2025, as revenue climbed 22.1% to RM344.42 million from RM282.02 million, its bourse filing showed.

Topline was mainly lifted by its advanced engineering division on stronger contributions from Singapore and Taiwan, supported by higher contributions from its process engineering and advanced industrial divisions in Malaysia, besides contributions from Germany. These improvements offset a decline in China's contribution as the group shifted focus to other growth markets.

The group declared a second interim dividend of three sen per share, up from 2.5 sen in the previous corresponding quarter, to be paid on Oct 12. This raised its year-to-date payout to six sen, as opposed to five sen previously.

For the six months ended June 30 (1HFY2026), the group reported a net profit of RM71.72 million, up 20.5% from RM59.53 million in 1HFY2025, as revenue grew 11.3% to RM614.84 million from RM552.3 million.

The group said it is well‑positioned to capture new opportunities, supported by an expanding tender pipeline and growing geographical footprint, on the back of a favourable outlook for the global semiconductor industry and continued investment in artificial intelligence, advanced logic and high‑bandwidth memory.

The group's tender book expanded by 42% quarter-on-quarter to RM7.5 billion as of June 30, with Singapore accounting for the largest share, followed by India, Malaysia, Europe, Taiwan and China. Outstanding order book stood at RM2.04 billion, after it secured RM1.23 billion worth of new contracts in 1HFY2026.

India is becoming an increasingly important growth market, it said, following the US$105 million (RM424.5 million) contract it secured in March to deliver a turnkey gas distribution system for a semiconductor wafer fabrication facility in Gujarat. "The group intends to build on this foothold while also pursuing further opportunities in Europe following its entry into the region through Germany. Across its markets, the group will remain selective, prioritising projects that offer attractive margin profiles."

The group will also continue to grow its industrial gases business, for which it is investing US$29.3 million to build a 300‑tonne‑per‑day merchant air separation unit plant in India that it aims to complete by the third quarter of 2028.

“With a sizable order book providing earnings visibility, a strengthened tender pipeline supporting future replenishment, and ongoing expansion in engineering and industrial gasses across key growth markets, the group remains positive on its prospects for FY2026 and beyond,” it added.

Kelington shares closed one sen higher at RM9 on Thursday, valuing the group at RM7.94 billion. The stock has gained over 76% year to date.