KJTS Reports Strong Q4 FY2023 with RM31.5 million in Revenue - Driven by Growth in Cooling Energy
KUALA LUMPUR, 28 FEBRUARY 2024 – KJTS Group Berhad (“KJTS” or the “Company”), a building support services provider in Malaysia, Thailand and Singapore, is pleased to announce the unaudited financial results of the fourth quarter for the financial year ended 31 December 2023 (“Q4 FY2023”). KJTS and its subsidiaries (the “Group”) reported a revenue of RM31.5 million for Q4 FY2023 and RM119.89 million for the financial year (“FY2023”), demonstrating growth driven primarily by cooling energy and cleaning services segments.
In Q4 FY2023, the cooling energy segment contributed RM14.1 million, accounting for 44.76% of the total revenue, while the cleaning services segment contributed RM13.4 million, representing 42.56% of the Group’s revenue. For FY2023, these segments recorded revenues of RM55.97 million and RM49.92 million, respectively.
Geographically, Malaysia continues to be KJTS's largest market, contributing RM24.4 million in revenue for Q4 FY2023 and RM92.9 million for the financial year. Singapore, as the Group’s largest foreign market, recorded revenue of RM6.4 million in the current quarter and RM24.4 million for the financial year.
KJTS achieved a Profit Before Tax (“PBT”) of RM2.3 million in Q4 FY 2023 and RM9.0 million for the financial year, after accounting for administrative expenses, which primarily included staff costs, rental, IT expenses, and depreciation of property, plant, and equipment. In addition, the Group reported a profit after tax and non-controlling interest ("PATNCI") of RM8.15 million for the financial year.
Quarter-on-quarter, KJTS experienced a 4.95% increase in revenue, rising from RM30.0 million in Q3 FY2023 to RM31.5 million in Q4 FY2023. However, the PBT declined from RM5.0 million in Q3 to RM2.3 million in the current financial quarter. This decrease was primarily due to increase in operating expenses, including costs related to the cooling energy segment and increased capacity related to manpower in cleaning services and facilities management segment. This is in line with the Group’s strategic plan to position itself for growth in the upcoming financial years.
Puan Azura Binti Azman, the Independent Non-Executive Chairman of KJTS Group Berhad, shared her excitement about the company's recent achievements, stating, 'This quarter's results not only demonstrate the strength of our business model but also reflect the dedication and hard work of our team. Our successful IPO in January 2024, raising RM58.9 million, signifies market confidence in our vision and strategy. These funds are earmarked for growth, particularly in the recurring cooling energy management segment, areas that have shown remarkable performance this quarter. The capital injection provides us with an exciting opportunity to scale up our operations.'
She added, 'As the market evolves, we are encouraged by our growth prospects in these segments. Our strategic focus, along with the recent capital infusion, positions us well to capitalize on market opportunities. We remain confident in our strategic direction and ability to deliver sustained value to our stakeholders, and we look forward to continued growth in the coming year and beyond’.
In 2 February 2024, the Company has also announced the subsidiary, KJTN Engineering Co., Ltd. (“KJTN Engineering”) has signed an Agreement with Central World Hotel Company Limited (“CENTARA”) for the works of retrofit, the provision of management, supervision, personnel, materials, equipment and supplies necessary to operate and maintain the chiller plant (“O&M services”) and the chilled water supply at Centara Grand Hotel at Central World in Bangkok, Thailand for a 15-years period, with a total fixed fee of THB125.7 million, or equivalent to RM16.8 million, and a variable fee monthly based on the chilled water supplied. This contract is expected to strengthen the recurring stream of revenue for the Group for the upcoming financial periods.
Image by Freepik
