KUALA LUMPUR (Nov 20): Integrated engineering solutions provider Kelington Group Bhd’s net profit grew 34.83% to RM6.26 million in the third quarter ended Sept 30, 2019 (3QFY19) – a record high quarterly profit for the group – from RM4.65 million last year, mainly due to higher revenue from the ultra high purity (UHP) segment.

Earnings per share rose to 2.01 sen, from RM1.84 sen, while quarterly revenue expanded 52.43% to RM97.03 million, from RM63.66 million, according to a filing to Bursa Malaysia yesterday.

The higher topline was mainly driven by higher contribution from the Singapore and China operations, said Kelington.

For the cumulative nine month period (9MFY19), its net profit rose 22.26% to RM16.21 million, from RM13.26 million last year, while revenue increased 12.15% to RM268.52 million, from RM239.43 million.

While the UHP segment remains the group's anchor revenue, its process engineering segment saw a spike in revenue contribution in 9MFY19, almost doubling to RM75.66 million from RM39.6 million.

On prospects, Kelington said the Singapore and China markets were the key growth drivers to the Group, and it expects to sustain the momentum going forward.

In 3QFY19, the company clinched an additional RM67 million worth of projects which boosted its total new project orders to RM294 million in FY19. The new projects are mainly from the UHP and Process Engineering division originating from Singapore and China, said Kelington.

Inclusive of carried forward projects, Kelington’s total orderbook grew to RM554 million, of which RM282 million remains outstanding, said the company.

Additionally, on its industrial gas business, Kelington said with the construction of the new liquid carbon dioxide (LCO2) plant completed and having it commenced operations since late October 2019, Kelington expects production to ramp up progressively and anticipate positive contribution from this new business from FY20 onwards.

“So far, preliminary feedback from the customers on our LCO2 has been positive and we are intensifying our business development activities especially to the food and beverage (F&B) industry players as our LCO2 produced is of food grade quality,” said its chief executive officer Raymond Gan, in a separate statement.

“This should contribute positively to our financial performance next year onwards,” he added.

Keligton shares slipped 3 sen to RM1.36 at press time, valuing the company at RM431.23 million. The stock has gained 14.03% from a year ago.