Friday 02/05/2025

KUALA LUMPUR, May 2 (Bernama) -- Kinergy Advancement Berhad (“KAB”), a Malaysian leader in sustainable energy and engineering solutions, has received positive coverage from Apex Securities in its latest research note. Apex has assigned KAB a fair value of RM0.45 per share, implying an upside potential of about 36.4% from its current market price of RM0.33. This makes the company an attractive consideration for investors looking at renewable energy opportunities.

Since pivoting its business strategy in 2018, KAB has evolved into an integrated sustainable energy provider, distinguishing itself from conventional renewable energy contractors. Its offerings now span across energy efficiency solutions, renewable and clean energy generation, and specialised mechanical and electrical engineering services.

Apex's report highlights KAB’s substantial order book, valued at RM361 million, providing earnings visibility through 2026. Approximately 71% of this order book stems from the Sustainable Energy Solutions (SES) segment, reflecting the success of KAB’s strategic shift toward renewable energy. Its diversified SES portfolio comprises solar projects, hydroelectric power, biogas, and waste-to-energy initiatives, all contributing to stable and recurring revenue.

Additionally, Apex points out KAB’s competitive advantage derived from its integrated service offerings, which allow it to secure projects through direct negotiations—a capability that few competitors can easily match. This model translates into improved profitability and consistent revenue performance.

Another significant driver of future earnings is KAB’s recent partnership with Perbadanan Kemajuan Negeri Perak (PKNPk), focusing on developing 29 renewable energy projects in Perak. These initiatives are expected to produce a combined capacity exceeding 1,800 MW, featuring large-scale floating and ground-mounted solar installations as well as small-scale hydropower projects. This strategic collaboration positions KAB favourably to benefit from the rising demand for renewable energy solutions from sectors such as data centres and manufacturing facilities.

Moreover, KAB’s strategic acquisition of a 47.5% stake in Jati Cakerawala provides an effective 38% indirect ownership in Teknologi Tenaga Perlis Consortium (TTPC), enhancing KAB’s potential to participate significantly in the power generation sector. The acquisition involves a site that previously hosted a 650MW combined-cycle gas turbine power plant, offering substantial repowering potential. This asset presents an attractive opportunity for KAB to strengthen its footprint within Malaysia’s energy infrastructure.

Financially, KAB reported a record revenue of RM244.8 million for FY2024, representing a growth of 22.8% from the previous year, primarily driven by expansion within the SES segment. Apex anticipates a compound annual growth rate (CAGR) of 21.3% in core net profit over the next three years, supported by a diversified portfolio and a robust project pipeline.

On the Environmental, Social, and Governance (ESG) front, KAB has consistently maintained a strong commitment. The company has been included in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index, and has achieved a 3-star ESG rating from the FTSE Russell Assessment consistently in 2021, 2022, and 2023. KAB’s alignment with Malaysia’s National Energy Transition Roadmap (NETR) ensures its ongoing relevance amid evolving regulatory environments.

SOURCE : KINERGY ADVANCEMENT BERHAD

FOR MORE INFORMATION, PLEASE CONTACT :
Name: Ms. Reiko Lai
Group Corporate Affairs and Communication Department
Email: pr-ir@kinergyadvancement.com
Tel: +603-9055 3812  / +60 12-905 5708

--BERNAMA