Core Data Highlights: A Strong Start to FY2025

KAB’s financial performance in Q1 FY25 demonstrates remarkable momentum, primarily driven by its Sustainable Energy Solutions (SES) segment. Let’s dive into the numbers that painted this optimistic picture:

Overall Group Performance

The Group’s revenue surged by an impressive 63.1% year-on-year to RM68.57 million, while net profit saw a solid 25.8% increase to RM6.25 million. This translates to an improved Earnings Per Share (EPS) of 0.30 sen, up from 0.25 sen previously, reflecting enhanced profitability and efficiency.

Segmental Performance: SES Leads the Charge

The Sustainable Energy Solutions (SES) segment was the primary growth engine, showcasing KAB’s strong market position in renewable energy projects:

SES revenue escalated by 72.6% year-on-year, reaching RM34.28 million. The segment’s operating profit also jumped significantly to RM8.46 million, maintaining a healthy operating margin of 24.7%. This performance underscores the recurring revenue characteristics of SES projects, including solar, biogas, and hydropower initiatives, providing clear earnings visibility for KAB.

The Engineering segment also contributed steadily, recording RM34.14 million in revenue and RM1.33 million in operating profit, ensuring balanced growth and operational diversification for the Group.

Robust Financial Health and Order Book

KAB’s operational health is further evidenced by a positive operating cash flow of RM8.13 million generated during the quarter. The Group’s total order book stands strong at RM730 million, with RM636 million from SES projects and RM94 million from Engineering projects. Adding to this positive outlook is a substantial tender pipeline valued at close to RM3.5 billion, indicating strong future growth potential.

Strategic Repositioning: From Provider to Powerhouse

KAB is not just reporting strong numbers; it’s undergoing a significant strategic transformation, repositioning itself as a comprehensive energy player with a firm trajectory towards becoming a sustainable, diversified, and trusted Independent Power Producer (IPP).

Key Strategic Milestones and Project Wins

• Acquisition of 47.5% Equity in Jati Cekerawala Sdn. Bhd. (Jati): This strategic move positions KAB as a project developer leading the repowering of a 650-megawatt (MW) power plant, translating into an effective 38% indirect ownership in Tecknologi Tenaga Perlis Consortium (TTPC), operator of a CCGT Power Plant in Perlis. This marks a significant entry into the IPP arena.
• Exploring 29 Potential Renewable Energy (RE) Projects: Collaborations with Perbadanan Kemajuan Negeri Perak highlight KAB’s commitment to expanding its renewable energy footprint.
• Multiple Contract Wins from PETRONAS Gas Berhad Units: Since 2023, KAB has secured three significant contracts, validating its role as a trusted local technical partner and demonstrating the scalability of its integrated service offerings.
• Record EPCC Contract: The announced RM646 million EPCC contract for a 120 MW power plant facility in Labuan, awarded by Rancha Power Sdn. Bhd., is KAB’s largest-ever, showcasing its enhanced capabilities. Other notable wins include a 72 MW Gas Engine Power Plant Project (10% equity in Sipitang Utilities Sdn. Bhd.) and a RM33.3 million EPCC contract for Utility Supply from Pengerang LNG (Two) Sdn. Bhd.

KAB’s capabilities now span the full project lifecycle, from pre-development planning to post-commissioning asset and facilities management, including the build-own-operate model for complex infrastructure and sustainable energy projects. Furthermore, the Group has established itself as a facilitator in the sale and purchase of Renewable Energy Certificates (RECs), enhancing its standing as a One-Stop Sustainable Energy Solutions Provider.

Management’s Vision

Dato’ Lai Keng Onn, Executive Deputy Chairman cum Group Managing Director of KAB, articulated the Group’s vision: “Over nearly three decades, KAB has grown as an engineering-led company, consistently embedding its technical expertise into the energy transformation journey… We are now entering a new phase — one that builds on sustainable earnings, operational discipline, and end-to-end project execution capabilities. Proudly EPCC tested and execution-ready, we are prepared to deliver at scale. Following our sector reclassification, we marked a profitable start to FY2025. We are positioned for the next leap, from Provider to Powerhouse.”

This statement clearly outlines KAB’s ambition to evolve beyond a solutions provider into a full-fledged energy player, focusing on becoming a diversified and trusted Independent Power Producer.