Kelington Group Berhad reported revenue growth of 65% year-on-year to RM173.3 million in 1Q2022 against RM104.8 million in the preceding year’s corresponding quarter (“1Q2021”).
On the back of strong revenue performance, the Group’s profit attributable to shareholders of the company climbed 50% YoY to RM8.3 million in the quarter under review as compared to RM5.5 million in 1Q2021.
The growth in top and bottom-line performance was propelled by high double-digit growth in revenue contribution across all operating markets. Revenue from Malaysia which represented 45% of total revenue in 1Q2022, increased 77% to RM77.9 million while revenue from Singapore and China rose 61% and 42% YoY respectively.
In terms of business segment, the Ultra High Purity (“UHP”) division remained the main revenue contributor at 65% of the Group’s total revenue in 1Q2022. Revenue from UHP division rose 63% to RM112.6 million due to increasing investment activities by semiconductor players in China, Singapore, and Malaysia. Meanwhile, revenue from the General Contracting segment jumped 136% YoY to RM38.4 million, attributable to the contribution from a major general contracting job in Malaysia.
The Industrial Gases segment continued an upward performance in 1Q2022 as revenue increased 12% YoY to RM9.9 million, underpinned by higher production output arising from recovery in economic activities.
Its order flows remain buoyant as the Group has thus far secured RM347 million worth of contracts as of 31 March 2022. Inclusive of the carried forward projects from prior years, Kelington’s total order book now stands at RM1.4 billion, of which RM1.2 billion remains outstanding as at 31 March 2022. The elevated order book is expected to further bolster its financial performance in FY2022.
As for outlook, the chips shortage remains prevalent moving into 2022 in view of the continuous growth in demand for semiconductors as well as a stretched lead time in building wafer fabrication plants. Hence, the demand for our UHP solutions remains elevated while it continues receiving tender invitations in operating markets.
The growth prospect of the Industrial Gases segment remains positive as it continues to see growing production output to cater to the increasing demand for liquid carbon dioxide (“LCO2”). The utilisation rate of the LCO2 plant currently stands at 70%.
On its balance sheet, gearing ratio stood at 0.47 times as of 31 March 2022. The Group’s total borrowings increased to RM96.0 million from RM56.5 million, mainly to finance and support our elevated orderbook in hand. Notwithstanding, Kelington’s balance sheet remains healthy with net cash position of RM11.9 million.
