Kinergy Advancement Initiated with BUY Call

KUALA LUMPUR, July 22, 2026 – Kinergy Advancement Bhd, Malaysia’s only integrated energy company spanning Renewable Energy, Clean Energy, Energy Efficiency and Engineering Services, has been initiated with a BUY recommendation and a target price of RM0.67, representing a 71.8% upside from RM0.39.

Analysts highlight Kinergy’s one-stop energy model as a structural moat, enabling cross-segment SELCO project wins and superior margins. Its Zero-CAPEX recurring income portfolio (28MW operational) provides a stable earnings floor, with expansion potential from the Perak pipeline and river site rights in Kedah.

Kinergy Advancement

Engineering Services is identified as a second growth engine, driven by hyperscale data centre expansion across Malaysia. Kinergy’s Grade 7 CIDB registration and established MEP credentials position it to capture rising demand, with bolt-on acquisitions offering further exposure.

Additionally, Kinergy’s 51% stake in the Perlis 1.5GW CCGT project, backed by Thailand’s B.Grimm Power, remains unpriced in current valuations despite regulatory approval in January 2026.

Valuation is based on applying the sector peer average PE of 22.7x to FY28F core net profit of RM64 million, supported by a three-star ESG rating. Risks include contract wins, rising construction costs, and labour availability.

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