KUALA LUMPUR (May 14): KKB Engineering Bhd posted a net profit of RM1.34 million in the first quarter ended March 31, 2018 (1QFY18), compared with a loss of RM1.47 million a year ago, after recognizing a net gain of RM 1.9 million from increasing its stake in its subsidiary, Oceanmight Sdn Bhd (OMSB).

KKB's quarterly revenue soared 50.4% to RM64.55 million from RM42.92 million in 1QFY17, on the improvement in revenue of its steel pipes and LPG cylinders manufacturing divisions and civil construction.

On prospects, the group said it will focus on its core business in areas of Structural Steel Fabrication, Hot-Dip Galvanising, Civil Construction works, supply of Steel Pipes for Water works projects and other related infrastructure works. It added that its plant in Kota Kinabalu, Sabah, is ready and equipped to supply any pipes requirement throughout East Malaysia, Brunei and Kalimantan when the opportunity arises.

“The group remains focused on its effort to identify viable new strategic and potential business opportunities in the Major Onshore Fabrication, in collaboration with OceanMight Sdn Bhd and other strategic partner(s), to acquire technology and a competitive edge in the medium to long term,” KKB added.

However, the group is cautious about the continued uncertainties in the global economic environment, escalation of costs due to inflationary pressure, volatility of global raw material steel prices and fluctuation of exchange rates as these are amongst factors that may impact the Group’s performance.

KKB shares closed unchanged at 94 sen, bringing it a market capitalisation of RM242.32 million.