Kelington's Q2 profit hits higher gear on overseas projects

The Kelington Group Bhd reported a significant surge in net profit for the second quarter of FY26, marking a 25.7% increase from the previous year, reaching RM32.89 million. Revenue also saw a notable growth of 22.1% to RM344.42 million, up from RM282.02 million in the same period last year. This improvement was largely attributed to active project activities in key regions such as Singapore, Malaysia, Taiwan, and Germany.

For the six-month period, the company's net profit expanded to RM71.72 million, up from RM59.53 million, while revenue reached RM614.84 million, from RM552.3 million a year earlier.

Advanced engineering (ultra high purity) division remains the core business segment, contributing 65.3% of total revenue in the first half, with RM401.7 million. Geographically, Singapore is the largest market, accounting for 40.7% of total earnings, followed by Malaysia at 33.9%, China at 15%, Taiwan at 4.4%, and Germany at 2.3%.

The company announced a second interim single-tier dividend of 3.0 sen per ordinary share, equivalent to RM26.5 million. This brings the total dividends declared for the financial year ending December 31, 2026, to 6.0 sen per share or RM52.8 million.

KM Seng Chuan, the CEO, highlighted that the performance reflects sustained demand across markets and the company's ongoing ability to meet customers' expectations. He emphasized that the company is actively tendering for projects across existing and new markets, prioritizing those that meet their margin expectations. As of June 30, 2026, Kelington's outstanding order book stood at RM2.04 billion, providing strong earnings visibility, while its tender book of RM7.50 billion indicates a substantial pipeline of potential opportunities.