KUALA LUMPUR, May 6 (Bernama) -- For years, Kinergy Advancement Berhad (KLSE: 0193) was viewed mainly as an engineering business. That foundation remains relevant, but FY2025 suggests the company’s story has moved into a broader category.
Kinergy is increasingly exposed to energy ownership, infrastructure development and longer-duration revenue structures. This means investors who still assess the company purely through an engineering lens may be missing the shift taking place in its business model.
The company’s FY2025 results provide clearer evidence of this transition. Revenue rose 117.4% year-on-year to RM478.3 million, approaching the half-billion-ringgit mark. Profit attributable to shareholders stood at RM27.9 million, while earnings per share came in at 1.31 sen.
The more important change was in the revenue mix. Kinergy’s Sustainable Energy Solutions (SES) segment generated RM328.2 million in revenue, up 207.5% year-on-year, and accounted for 69% of group revenue, compared with 49% in FY2024. Engineering revenue stood at RM148.7 million.
Kinergy’s Founder, Executive Deputy Chairman and Group Managing Director, Dato’ Lai Keng Onn, said the Group’s risk profile has changed since 2018 as it moved into businesses requiring more capital, patience and disciplined governance.
“We made a deliberate shift beyond a traditional project-delivery model and the limitations of an engineering contract cycle. As this portfolio continues to take shape, SES has emerged as a significant growth pillar and a key differentiator in the Group’s value creation journey,” he said.
The RM646.32 million Labuan 120MW gas engine power plant is one example of this shift. It is Kinergy’s largest EPCC contract to date and its third major project involving PETRONAS-linked entities. The project is expected to support Labuan and the wider Sabah power system by providing reliable baseload capacity.
Another key catalyst is the proposed Teknologi Tenaga Perlis Consortium (TTPC) gas-fired development, where Kinergy has secured a position as the leading consortium member. The project signals Kinergy’s entry into the Independent Power Producer (IPP) space.
While the IPP model carries higher capital requirements and longer payback horizons, the Perlis project starts from a brownfield position. Existing transmission interconnection, gas supply infrastructure and water facilities may reduce the timeline and capital intensity compared with a full greenfield power project.
Kinergy’s transition also extends into renewable energy. Its 21-year Virtual Power Purchase Agreement with Safran Landing Systems Malaysia, backed by hydropower and requiring output of 80GWh to 108GWh per year, reflects the Group’s ability to structure long-term energy solutions for corporate users.
Taken together, these developments point to a company moving deliberately from project execution into energy infrastructure and ownership-linked models.
“Our growth has always been measured against the risk it introduces and the complexity it demands. The market takes time to reprice businesses that have genuinely changed category. We understand that. We are patient, and we believe the evidence continues to accumulate,” Lai said.
Kinergy ended FY2025 with a secured order book of RM1.0 billion and an active tender pipeline of RM2.2 billion, giving a total development pipeline of RM3.2 billion.
SOURCE : Aegis Communication
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--BERNAMA