KJTS Group Berhad Q1 2025: A Resounding Return to Profitability and Strategic Expansion
Good day, fellow investors! Today, we’re diving into the latest unaudited interim financial report from KJTS Group Berhad for the first quarter ended 31 March 2025. After navigating a period of significant corporate activities, including its recent listing, KJTS has delivered a performance that warrants a closer look. The report reveals a strong return to profitability and a clear strategic roadmap for future growth, making this a pivotal period for the company. Let’s unpack the numbers and understand what’s driving this positive momentum.
Core Data Highlights: A Quarter of Significant Growth
KJTS Group Berhad has showcased a remarkable turnaround in its financial performance for the first quarter of 2025, significantly improving upon the prior year’s corresponding period. This impressive growth is largely attributed to the absence of one-off listing expenses incurred in the previous year and robust operational performance across its key segments.
Revenue and Profitability Surge
The company reported a substantial increase in both revenue and profit before tax (PBT) and profit after tax (PAT). The top-line growth indicates a healthy expansion of business activities, while the leap in profitability underscores improved operational efficiency and the absence of non-recurring costs.
Q1 2025 (Current Quarter)
- Revenue: RM46.55 million
- Gross Profit: RM11.94 million
- Profit Before Tax (PBT): RM4.66 million
- Profit After Tax (PAT): RM4.23 million
- Profit Attributable to Owners: RM4.23 million
- Basic Earnings Per Share (EPS): 0.61 sen
Q1 2024 (Preceding Year Corresponding Quarter)
- Revenue: RM36.20 million
- Gross Profit: RM9.09 million
- Loss Before Tax (LBT): RM(0.15) million
- Loss After Tax (LAT): RM(0.77) million
- Loss Attributable to Owners: RM(0.84) million
- Basic Loss Per Share (LPS): (0.12) sen
Compared to the same period last year, revenue grew by approximately 28.6%, from RM36.20 million to RM46.55 million. Even more striking is the turnaround in profitability: a PBT of RM4.66 million this quarter, a significant improvement from an LBT of RM(0.15) million in the corresponding quarter last year. This remarkable shift is primarily due to the absence of RM4.26 million in non-recurring listing expenses incurred in the prior year and increased gross profit from recently secured EPCC (Engineering, Procurement, Construction and Commissioning) projects.
Quarter-on-Quarter Performance
Looking at the performance against the immediate preceding quarter (Q4 2024), KJTS also demonstrated solid sequential growth, indicating continued operational strength.
Q1 2025 (Current Quarter)
- Revenue: RM46.55 million
- Profit Before Tax (PBT): RM4.66 million
Q4 2024 (Preceding Quarter)
- Revenue: RM39.03 million
- Profit Before Tax (PBT): RM3.61 million
Revenue increased by 19.3% from RM39.03 million in Q4 2024 to RM46.55 million in Q1 2025. PBT also saw a healthy increase of 28.9%, rising from RM3.61 million to RM4.66 million. This was driven by higher gross profit across all segments due to increased revenue and improved cost management.
Segmental Contributions
The company’s growth was largely fueled by its core business segments:
| Business Activity | Q1 2025 Revenue (RM’000) | Contribution to Group Revenue (%) |
|---|---|---|
| Cooling Energy | 26,808 | 57.59% |
| Cleaning Services | 16,808 | 36.11% |
| Facilities Management | 2,935 | 6.30% |
| Total | 46,551 | 100.00% |
The Cooling Energy segment, boosted by new EPCC projects, and the Cleaning Services segment, benefiting from a growing customer base, were the primary revenue drivers. While Facilities Management saw a slight decrease due to cyclical annual maintenance in the preceding quarter, its overall contribution remains significant.
Geographical Reach
Malaysia remains the largest market, contributing 80.15% of the group’s revenue. Singapore is the largest foreign market, accounting for 16.97%, followed by Thailand.
Financial Health: A Stronger Balance Sheet
KJTS Group’s financial position as at 31 March 2025 shows a healthy increase in total assets to RM165.98 million from RM149.73 million at the end of 2024. Total equity also grew to RM119.03 million, reflecting the improved profitability. While total liabilities increased, this was partly due to an increase in bank borrowings to support strategic initiatives.
Cash and cash equivalents stood at RM57.81 million at the end of the quarter. The net cash used in operating activities (RM1.72 million) and investing activities (RM7.25 million, primarily due to a deposit paid for a significant acquisition) indicates active investment in growth, partially offset by net cash from financing activities (RM1.57 million).
Risk and Prospect Analysis: Navigating Growth Amidst Challenges
KJTS Group operates in a dynamic environment, but its strategic positioning and recent initiatives suggest a robust outlook. While global trade policies present potential disruptions, the company’s diversified presence across Malaysia, Singapore, and Thailand, combined with long-term contracts, provides resilience against external headwinds.
Favorable Market Tailwinds
Malaysia’s economic momentum, with a 4.4% GDP growth estimate for Q1 2025 and a stable Overnight Policy Rate (OPR) at 3%, creates a supportive domestic backdrop. Furthermore, proposed electricity tariff revisions (up to 45.62 sen/kWh from July 2025) are expected to accelerate demand for energy-efficient solutions, directly benefiting KJTS’s cooling energy business. Government initiatives like the National Energy Transition Roadmap (NETR) and potential carbon taxes further align with the Group’s focus on sustainable energy solutions.
Strategic Expansion and Partnerships
KJTS is actively expanding its market presence and strengthening its recurring income base through several key strategic initiatives:
- Malakoff Utilities Sdn Bhd (MUSB) Acquisition: The proposed RM65.50 million acquisition of MUSB, expected to complete by Q2 2025, will grant KJTS full control over the KL Sentral district cooling system and exclusive electricity distribution rights, positioning the Group in Malaysia’s urban energy infrastructure.
- Medi-City Batu Kawan District Cooling Plant: A strategic collaboration for the development and construction of a district cooling plant in Penang’s Medi-City, solidifying the Group’s foothold in large-scale healthcare and mixed-use development zones.
- New Facilities Management Contract: Awarded a new contract at Marlborough College Malaysia in Johor, adding to its institutional client base.
- Joint Ventures for Integrated Solutions:
- Formed KJTS iHandal Sdn Bhd with iHandal Holdings Sdn Bhd to offer integrated, energy-efficient heat recovery solutions.
- Established KJCyclect Pte Ltd with Cyclect Investments Pte Ltd to deliver innovative cooling energy and facilities management services in Singapore.
- Long-term Service Agreement: A 20-year service agreement with Pacific Trustees Berhad (on behalf of KIP Real Estate Investment Trust) for retrofit works, operations, maintenance, and chilled water supply to seven KIPMall sites, valued at RM25.27 million, enhancing long-term revenue visibility.
- Strategic Partnership with Stonepeak Kelvin Holdings Limited: A significant joint venture to co-invest and own cooling assets, targeting up to RM1.5 billion in cooling infrastructure investments, unlocking institutional capital for future asset-backed expansion.
Summary and
This blog post is for informational purposes only and does not constitute financial advice or . Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
KJTS Group Berhad’s first-quarter 2025 results paint a picture of a company hitting its stride. The strong revenue growth and a significant return to profitability, largely due to the absence of one-off listing expenses and the successful execution of new projects, are clear indicators of operational strength. The strategic initiatives undertaken, including major acquisitions and joint ventures, demonstrate a proactive approach to expanding market share, diversifying income streams, and securing long-term revenue visibility, particularly within the burgeoning energy efficiency and facilities management sectors.
The company is well-positioned to capitalize on Malaysia’s stable economic environment and supportive government policies aimed at energy transition. Its expanded regional presence in Singapore and Thailand also adds a layer of resilience and growth potential.
Key factors for investors to watch include:
- The successful integration and earnings accretion from the proposed acquisition of Malakoff Utilities Sdn Bhd.
- The progress and impact of the various new projects and joint ventures, especially the large-scale cooling infrastructure investments with Stonepeak.
- The company’s ability to maintain its growth momentum in its core Cooling Energy and Cleaning Services segments amidst competitive market conditions.
- How the company manages its increased borrowings in light of its expansion plans.
Overall, KJTS Group Berhad appears to be on a positive trajectory, leveraging strategic partnerships and market opportunities to drive sustainable growth.
Summary and
This blog post is for informational purposes only and does not constitute financial advice or . Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
KJTS Group Berhad’s first-quarter 2025 results paint a picture of a company hitting its stride. The strong revenue growth and a significant return to profitability, largely due to the absence of one-off listing expenses and the successful execution of new projects, are clear indicators of operational strength. The strategic initiatives undertaken, including major acquisitions and joint ventures, demonstrate a proactive approach to expanding market share, diversifying income streams, and securing long-term revenue visibility, particularly within the burgeoning energy efficiency and facilities management sectors.
The company is well-positioned to capitalize on Malaysia’s stable economic environment and supportive government policies aimed at energy transition. Its expanded regional presence in Singapore and Thailand also adds a layer of resilience and growth potential.
Key factors for investors to watch include:
- The successful integration and earnings accretion from the proposed acquisition of Malakoff Utilities Sdn Bhd.
- The progress and impact of the various new projects and joint ventures, especially the large-scale cooling infrastructure investments with Stonepeak.
- The company’s ability to maintain its growth momentum in its core Cooling Energy and Cleaning Services segments amidst competitive market conditions.
- How the company manages its increased borrowings in light of its expansion plans.
Overall, KJTS Group Berhad appears to be on a positive trajectory, leveraging strategic partnerships and market opportunities to drive sustainable growth.
Final Thoughts and Your Perspective
KJTS Group Berhad’s Q1 2025 report showcases a company that is not just recovering, but actively building a stronger, more diversified foundation for the future. The strategic moves in district cooling, facilities management, and new partnerships underline a clear vision for growth in essential services.
What are your thoughts on KJTS Group’s latest performance? Do you believe their strategic acquisitions and partnerships will significantly enhance their long-term value? Share your insights and let’s discuss in the comments below!
