KUALA LUMPUR: Kumpulan Powernet Bhd’s (KPower) net profit rose to RM1.86 million in the second quarter ended December 31 2019 from RM1.13 million a year ago.
KPower, in an exchange filing with Bursa Malaysia today, said its revenue had grown a whopping 1,509.9 per cent to RM13.64 million, from RM847,000 a year ago.
For the cumulative six months, the company’s top line stood at RM24.80 million, an increase of 974.9 per cent compared to RM2.31 million recorded in the preceding year’s six months.
During the quarter under review, KPower said the higher revenue was mainly driven by its new business segment of construction-related activities, which contributed RM11.14 million or 81.7 per cent to the total revenue.
“The revenue generated from this segment arises from preliminary works on the construction of a sewerage treatment plant and its related work valued at RM254 million which was awarded on November 28, 2019 as well as from various other construction projects,” it added.
KPower group managing director Mustakim Mat Nun said as the company was shifting its focus more towards energy, utility, infrastructure and logistics.
It is seeking for the shareholders’ approval for diversification of its business to include construction as soon as possible.
“We believe that with the new direction that the group is currently embarking on, we will be able to position us to be a regional player in the sustainable and green technology space.
“This will enable us to access bigger markets that can be capitalised for the future growth of the group,” said Mustakim.
He said KPOwer had recently received and accepted a letter of award from Zhenghong Building Road and Bridge Construction Co Ltd to undertake, among others, the design, supply, construction, commissioning and completion of an eight megawatt hydropower plant at Nam Samoy in Vientiane, Laos.
“We are expecting this US$15.85 million contract to contribute positively to our financial year ending 30 June 2020 and the subsequent periods.
“We are on track to meet our target order book of RM1 billion by the end of this financial year,” he added.