KERJAYA Raises ES Sunlogy Stake Above 31%

KERJAYA increases its ES Sunlogy stake to 31%, strengthening M&E and renewable-energy exposure while maintaining a manageable balance-sheet position.

KERJAYA Raises ES Sunlogy Stake

KERJAYA PROSPEK GROUP BHD has increased its stake in ES Sunlogy Bhd to 31% following the acquisition of an additional 2.73% interest for RM5.36 million.

The acquisition was made through wholly-owned subsidiary Acumen Marketing Sdn Bhd at RM0.255 per share, bringing KERJAYA’s cumulative investment in ES Sunlogy to RM64.31 million. This follows an initial subscription for a 9.09% stake in July and a further 19.18% acquisition on Aug 14.

The latest purchase price represents a 36.15% discount to ES Sunlogy’s Aug 14 closing price of RM0.40. Based on the cumulative investment, KERJAYA’s implied valuation of ES Sunlogy is approximately RM207.5 million, compared with its market capitalisation of about RM308 million.

On valuation, the latest transaction implies a price-to-earnings ratio of approximately 22.3 times, compared with 33.1 times based on ES Sunlogy’s prevailing market valuation. The acquisition also represents 1.49 times ES Sunlogy’s reported net asset value per share of RM0.171, versus 2.34 times at the market price. The valuation is therefore viewed as fair.

The enlarged stake strengthens KERJAYA’s exposure to mechanical and electrical engineering as well as renewable energy, with potential opportunities to support its construction pipeline, including data centre-related infrastructure projects.

The investment remains manageable for KERJAYA, with the cumulative RM64.31 million commitment representing about 28% of its estimated FY26 cash balance of RM233.7 million and 5.1% of total equity.

KERJAYA also raised its FY27F and FY28F earnings forecasts by 0.1% each to reflect equity-accounted contributions from the 31% associate stake.

The company maintained its BUY recommendation and RM3.38 target price, based on 15 times FY27F earnings per share of 22.5 sen.

Source: APEX

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