Kenergy Lastest QR Summary

### Summary of Kawan Renergy Berhad Interim Financial Report (FPE 30 April 2024)

#### Financial Performance
- **Revenue**: For the quarter ended 30 April 2024, Kawan Renergy Berhad (KRB) reported a revenue of RM22.2 million, an 11.2% increase from the preceding quarter's RM19.9 million [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Profit Before Tax (PBT)**: The PBT for the current quarter was RM6.5 million, showing an increase of 26.5% compared to RM5.2 million in the previous quarter. This was mainly due to an improvement in the gross profit (GP) margin, which rose from 30.9% to 33.8% [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Profit After Tax (PAT)**: The company recorded a PAT of RM4.4 million for the current quarter, a slight increase from RM4.2 million in the preceding quarter [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Earnings per Share (EPS)**: Basic EPS stood at 0.03 sen, with diluted EPS at 0.01 sen for the quarter [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).

#### Cash Flow and Equity
- **Operating Activities**: KRB generated an operating profit before changes in working capital of RM12.9 million [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Equity Changes**: The company reported total equity of RM52.0 million as of 30 April 2024 [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).

#### Business Segments and Growth
- **Renewable Energy and Co-Generation**: Significant growth was seen in the renewable energy segment, with revenue increasing by 179.3% to RM8.1 million from RM2.9 million in the previous quarter [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Process Plant Segment**: This segment saw a decline in revenue by 54.4%, down to RM2.6 million from RM5.7 million [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).

#### Future Prospects
- **Expansion Plans**: KRB plans to construct a new 2 MW biomass power plant to diversify its income base and generate more recurring revenue. The company also aims to enhance its landfill biogas power plant by installing an anaerobic digestion system [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).
- **Industry Outlook**: The industrial process equipment industry in Malaysia is growing, with a reported increase from RM15.6 billion in 2020 to RM23.5 billion in 2023. The biogas industry is also expanding, supported by government incentives and increased electricity demand [[❞]](file-service://file-zb1WFY4AVo2rqQZUQf7GoEPr).

### Conclusion: Investment Worthiness

Based on the financial performance and growth prospects detailed in the interim financial report, Kawan Renergy Berhad shows several positive indicators:
1. **Revenue Growth**: Steady revenue growth, especially in the renewable energy segment, suggests potential for sustainable profitability.
2. **Profit Margins**: Improved gross profit margins and increased PBT indicate effective cost management and profitability.
3. **Strategic Expansion**: Planned investments in biomass and biogas power plants, alongside improvements in production efficiency, align with long-term growth strategies.
4. **Industry Trends**: The positive outlook for the industrial process equipment and biogas industries in Malaysia provides a supportive external environment for KRB’s growth.

Given these factors, KRB appears to be a promising investment, particularly for those interested in the renewable energy sector. However, potential investors should also consider any associated risks and conduct further due diligence.