KPower’s quarterly profit surges 400% on higher revenue
KUALA LUMPUR (Feb 22): KPower Bhd, formerly known as Kumpulan Powernet Bhd, saw its net profit surge nearly 400% to RM9.25 million for the second quarter ended Dec 31, 2020, from RM1.86 million a year earlier.
In an exchange filing today, the group said earnings per share rose to 11.68 sen from 2.44 sen.
Quarterly revenue jumped 560% to RM90.06 million from RM13.64 million, contributed by the group’s construction related activities, as well as property development and investment, and healthcare segments.
KPower said the construction-related activities segment recorded a significant increase due to engineering, procurement, construction and commissioning activities, mainly in Laos and Malaysia and other construction-related activities in Malaysia.
The property development and investment segment recorded a revenue of RM3.95 million based on the progress of completion during the period for the units sold, the group said.
It added that the healthcare segment, which was derived from the reclassification of the manufacturing segment, saw a 196% jump in revenue to RM470,000. The loss before tax decreased 34% to RM870,000.
KPower said net profit for the first half ended Dec 31, 2020 jumped 520% to RM17.4 million from RM2.81 million in the previous corresponding period, while revenue soared 493% to RM147.13 million from RM24.8 million.
Acknowledging the challenges from Covid-19, the group said it has deployed its resources to put the necessary structure in place and has undertaken continuous enhancement to its work force.
“The key considerations to our strategy include forming a clear classification of our businesses into four segments; Energy and Utilities, Properties, Logistics and finally, Healthcare and Technologies,” it said.
The group added: “Despite the challenges of Covid-19, we are confident of securing the target orderbook of RM2 billion by June 2021. With our core strength and competencies in the energy and utilities segment, combined with the enhancement and deployment of resources in other segments, we remain optimistic on the future financial performance of the group.”
Shares of KPower fell 13 sen or 5.96% to RM2.05 today, with 8.01 million shares traded. This values the group at RM927.28 million.