Kelington Group Berhad Reports 14% Increase in First‑Quarter Net Profit
KUALA LUMPUR – Kelington Group Berhad (KL:KGB) announced that its first‑quarter (Q1) net profit rose 14.04 % to RM30.39 million, compared with RM26.65 million reported for the same period a year earlier. The increase was attributed to higher profit margins.
Financial Highlights
| Item | 1QFY 2026 | 1QFY 2025 |
|---|---|---|
| Net profit | RM30.39 million | RM26.65 million |
| Revenue | RM270.43 million | RM270.28 million |
| Gross profit margin | 30 % | (not disclosed) |
| Production cost decline | 6.55 % | (not disclosed) |
The company’s gross profit margin expanded to 30 %, driven by a 6.55 % decline in production costs. These savings offset higher administrative expenses and foreign‑exchange losses. Overall revenue increased marginally, rising only RM0.15 million from the previous year, a growth that was limited by seasonal slow‑downs and shorter working periods during festive periods.
Dividend Declaration
Kelington declared a first interim dividend of three sen per share, to be paid on 10 July 2026.
Revenue by Market
Singapore accounted for 40 % of total revenue, followed by:
- Malaysia – 31.52 %
- China – 18.17 %
- Taiwan, Germany and other markets – 10.32 %
Order Book and Future Projects
The group secured a landmark contract worth RM413.7 million in March 2026, which brought its outstanding order book to RM1.92 billion. Under this contract, Kelington will deliver a turnkey gas distribution system for India’s first pure‑play semiconductor wafer fabrication facility in Gujarat. The company also announced plans to expand into new geographical markets, notably India.
Share Price
Following the earnings announcement, Kelington shares closed at RM7.33, up eight sen (1.1 %) from the previous close. At that level, the market value of the company was RM6.32 billion.
The company’s performance is set against a backdrop of broader industrial activity, with peers such as Axiata, MISC, Gamuda, and Sime Darby also reporting notable earnings movements in the same quarter.
