Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
🔹 HLIB Retail Research – 09 September – Bullish Tracker: KINERGY (RM0.40) 🔹
🌟 KINERGY: Building a good base above MA200; pending reversal amid reviving buying interest 🌟
📊 Technical View
Undemanding valuation; building a good base near MA200. Kinergy trades at just 18.2x FY27F P/E, well below its 2-year mean of 68.3x and peers’ 24.1x. Following a healthy pullback from RM0.43 to RM0.40 after a 41% rebound from RM0.305, the stock is consolidating with buying interest reviving. Price remains above the MA100 and MA200 and is attempting to reclaim the MA20, signalling improving momentum.
A breakout above RM0.415 (MA20) would confirm the short-term uptrend, targeting RM0.43 (YTD high) and RM0.455 (85% FR). Support stands at RM0.39 (MA200) and RM0.365 (38.2% FR), with a cut-loss at RM0.37.
💡Strong earnings visibility. Kinergy’s RM1.14bn orderbook, dominated by SES (92%), provides solid earnings support, while its RM3.08bn tender pipeline offers substantial growth optionality. Key catalysts include the 300MW Sabah CCGT, Petronas Gas’ 150MW EPCC, and PKNPK Perak pipeline projects.
🚀Prospects remain constructive for Kinergy’s growth trajectory. The anticipated 4QFY26 earnings surge marks an interim milestone rather than a terminal earnings peak, as the Labuan facility is scheduled for 2Q2028 completion, with progressive billings stretching across 2027 and into 1HFY28.
⚡️The SES segment continues to anchor group performance, with 1HFY26 revenue surging 47.9% YoY to RM170.7m, generating over 80% of total revenue. Simultaneously, the 28MW Zero-Capex asset base delivers a highly resilient, recurring income stream.
🏗Although the Engineering Services division is navigating a cyclical bottom as historical M&E contracts reach final billing stages, this segment’s bid pipeline has rebounded to RM383m, underpinned by robust MEP and data centre-driven demand, presenting a clear replenishment catalyst as tenders convert.
TA research said the 250MW quota on offer translated into RM3bil of potential investment, providing a catalyst for project developers, engineering, procurement, construction and commissioning and supply chain players involved in biogas, biomass and small hydropower projects
Cypark Resources Bhd, Samaiden Group Bhd and Kinergy are potential developers or bidders in the biomass and biogas segments
Engineering gives them technical track record, then use that to capture massive SES projects like the Petronas gas engine plant. Once built, transition into IPP asset owner. Margin expansion from 10% to 15% in latest QR tells the whole story
With three distinct segments, SES, Engineering, IPP, KIENERGY has multiple avenues to compound growth without relying on a single business, creating a more resilient and defensible model as it scales its energy platform, with engineering serving as the operational backbone
KINERGY semakin kukuh apabila 2Q26 net profit naik 39.5% kepada RM9.1 juta. SES kini menyumbang lebih 80% revenue, disokong orderbook RM1.14 bilion dan tender pipeline RM3.08 bilion. Earnings visibility semakin jelas.
Join our Telgram "Bskl_Siti" for the latest market information, updates, and educational.. See Bio..