KUALA LUMPUR (Nov 28): Kumpulan Powernet Bhd (KPower), which recently returned to the black, is changing its focus to the energy, utilities as well as infrastructure sector with an aim to get an order book of RM1 billion in its current financial year.

The group has just won a letter of award today from Signvest Sdn Bhd for the construction and upgrading works of sewerage treatment facilities as well as the construction of a 12-floor green building, worth RM254.32 million.

This, together with existing projects secured, brings its current order book to RM265 million, said the group's major shareholder and non-executive deputy chairman Datuk Dr Mohd Abdul Karim Abdullah.

By the end of the current financial year ending June 30, 2020 (FY20), KPower is targeting an order book of RM1 billion, which is also expected to bring about better net profit this year.

Its tender book stands at RM2.5 billion, comprising projects in the energy and utilities segment.

"We are in the midst of a turnaround. Our aim is to ensure the company remains sustainable. That means the projects we secure must have a fast rate of return," Mohd Abdul Karim told a press conference following KPower's extraordinary general meeting (EGM).

KPower recently returned to the black in FY19 after bleeding red ink for the past nine years.

In its first quarter ended Sep 30 (1QFY20) results released yesterday, the group posted a net profit of RM948,000 compared to a net loss of RM328,000 a year ago, as revenue jumped more than seven times to RM11.16 million from just RM1.46 million a year ago.

The company also announced a new dividend policy where it aims for a payout ratio of 20% of consolidated profit after tax for each financial year beginning FY20.

At its EGM today, the group received its shareholders' approval to enter into recurrent related party transactions (RRPT) with related parties that it deems necessary for its day-to-day operations and to support its order book growth.

KPower group managing director Mustakim Mat Nun said the related parties are OHP Group, a green power technology company that is 51% owned by himself, as well as Serba Dinamik Group, which is 23.61% owned by Mohd Abdul Karim.

The group, which initially started off in textile manufacturing, had in recent years moved into property development, which is the main driver of revenue as of 1QFY20.

However, KPower is hoping to make green energy a main focus and balance out revenue contributions.

"The demand for textile business is still there. However, we want the green energy segment to grow, become a regional player. We are expecting it to contribute significantly this year," he said.