KUALA LUMPUR: Kinergy Advancement Bhd (KAB), a sustainable energy solutions (SES) and engineering solutions provider, posted a revenue of RM97.7 million in the second quarter (Q2) ended June 30, 2025 (FY25), surging 133.8% year-on-year (YoY) from RM41.8 million posted in FY24, driven by project progress across both segments.
The energy segment remains the core revenue driver. At the same time, the engineering division translates this foundation into operational strength, together expected to culminate in the group’s largest EPCC contract win in the coming quarters.
For H1’25, revenue rose 98.3% YoY to RM166.3 million, compared with RM83.9 million in 1H’24.
Net profit attributable to shareholders rose 16.6% YoY to RM6.5 million in Q2’25, bringing H1’25 net profit to RM12.7 million, up 20.9% YoY.
Earnings per share improved to 0.61 sen for the six months compared to 0.53 sen a year ago.
Since FY24, the group’s strategic transformation has been evident in its segmental performance.
The SES segment is now the primary contributor to both revenue and profit, delivering RM81.1 million in revenue and RM9 million in operating profit for Q2’25.
This reaffirms the success of KAB’s focus on higher-margin, recurring concession-based projects.
The engineering segment contributed a stable RM16.5 million in revenue.
While SES delivered more than a twofold revenue increase, KAB remains anchored by its engineering legacy.
Leveraging this foundation with bold expansion in energy excellence, the group secured its landmark EPCC contract during the quarter, fortifying its growth base and earnings visibility, with expectations of continued momentum and broader growth in FY25.
The Q2’25 results attest to the group’s operational discipline and strong project execution, with KAB generating operating cash flow of RM51.1 million in H1’25, a sharp increase from RM5.8 million in the same period last year.
This significant uplift reflects the group’s ability to consistently convert topline growth into real cash, reinforcing liquidity to support future expansion.
Since diversifying into the energy segment, KAB has charted a clear and sustainable growth trajectory, while its engineering legacy remains a cornerstone of strength and credibility.
This purposeful transformation, driven by visionary leadership, continues to deliver measurable milestones and strategic progress.
With a healthy order book of RM1.34 billion and a tender pipeline of approximately RM2.78 billion, the group anticipates stronger quality earnings and an enhanced capacity to fund expansion into larger-scale projects.
Executive deputy chairman and group managing director Datuk Lai Keng Onn said each milestone continues to expand the company’s capabilities and strengthen its ability to deliver sustainable long-term value for shareholders.
“This quarter’s performance once again reflects the consistent performance of our SES segment, which has firmly established itself as the group’s key growth engine since the strategic shift in 2022, contributing recurring earnings that now anchor our financial results.
“While we continue to embrace our engineering legacy, the group’s momentum has been reinforced by major strategic wins.
“Our record RM646 million EPCC contract, the FiT 2.0 approvals to develop two hydropower projects, and the 650MW repowering initiative for a decommissioned power plant in Perlis mark significant milestones that strengthen earnings visibility, reaffirm our advanced technical expertise, and position us with a clear edge to independently undertake larger-scale projects,“ he said in a statement.
Lai said together, these achievements position KAB to accelerate its transformation into a full-fledged Independent Power Producer (IPP), while delivering long-term shareholder value and contributing meaningfully to Malaysia’s energy transition.
With a growing portfolio of long-term concession projects, trusted partnerships with industry leaders, and a proven track record in SES and engineering EPCC, KAB continues to scale beyond its role as an energy and engineering solutions provider – building towards its aspiration of becoming a sustainable and trusted Malaysia-based EPCC player through its engineering segment, while advancing the SES segment’s transformation into a full-fledged IPP.