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KKB Engineering expects to achieve strong results in FY19

KUALA LUMPUR (Nov 14): KKB Engineering Bhd’s net profit grew 2.8 times to RM19.34 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM6.93 million a year ago, on higher revenue from its steel fabrication and construction divisions, coupled with improved margins for the engineering sector.

The group also attributed the higher earnings to higher other income, in which RM6.9 million was recognised following a settlement from an arbitration reached between its wholly-owned unit KKB Builders Sdn and Global Upline Sdn Bhd.

This resulted in a higher earnings per share of 7.5 sen for 3QFY19 compared with 2.69 sen for 3QFY18.

Quarterly revenue was up 47.5% to RM165.48 million from RM112.18 million in 3QFY18.

The strong quarterly performance lifted the group's net profit for the cumulative nine months ended Sept 30, 2019 (9MFY19) up by 179% to RM28.05 million from RM10.04 million a year ago, while revenue increased 49.3% to RM403 million from RM269.94 million in 9MFY18.

On prospects, the group expects to achieve strong results for the financial year ending Dec 31, 2019, supported by the existing contracts for the ongoing construction works and major onshore fabrication jobs for the oil and gas facilities.

“The group is continuously pursuing various engineering projects, particularly projects related to the supply, laying and commissioning of water pipes and other related infrastructure works scheduled to be implemented under the Sarawak Water Supply Grid Programme,” said KKB.

Shares of KKB closed one sen or 0.72% higher at RM1.40 yesterday, valuing it at RM360.91 million. Year-to-date, the counter has risen 65% from 85 sen.

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