KUALA LUMPUR (June 24): Kinergy Advancement Bhd (KL:KAB) has inked a memorandum of understanding (MOU) with state-owned investment company Permodalan Kedah Bhd (PKB) to develop sustainable energy projects.

In a statement on Monday, KAB said it will take on the technical responsibilities and utilise its experience in the energy sector, while PKB will identify potential land for renewable energy projects and assist in authorisation responsibilities such as obtaining project licensing.

It said the partnership focuses on the deployment of clean energy, renewable energy, energy-efficient solutions projects and engineering works, among others. This includes the development of solar farms and waste-to-energy generation.

“Beyond this MOU lies a vision for accelerated growth aimed at transforming Kedah into a beacon of progress and innovation,” said KAB’s executive deputy chairman Datuk Lai Keng Onn.

“KAB values PKB’s dedication to advancing the state through innovative technologies that prioritise environmental impact reduction alongside achieving energy conservation, stability and resilience in line with Kedah’s sustainable development objectives,” he added.

The MOU will be valid for two years from its commencement date of June 19.

While it is not expected to have any material effect on KAB’s earnings for the financial year ending Dec 31, 2024 (FY2024), the group said it is expected to contribute positively to the group’s future earnings.

Lai is the largest shareholder in KAB with a 19.54% direct stake and a 9.23% indirect stake held through Stocqtech Sdn Bhd.

Other substantial shareholders include Tong Kum Loong with a 9.03% stake and a 1.59% indirect stake held through Regalis Investment Ltd and Gemini Bliss Sdn Bhd.

For the first quarter ended March 31, 2024 (1QFY2024), the group’s net profit doubled to RM4.97 million from RM2.43 million a year earlier due to higher contribution by its sustainable energy solutions segment.

Revenue declined by 1.7% year-on-year to RM42.04 million from RM42.76 million, dragged by its engineering segment which recorded lower revenue due to project completion.

Shares of KAB were up one sen to 37.5 sen at Monday’s noon break, valuing the group at RM744.9 million. Year to date, the counter has declined by 3.85%.