APEX Securities Research has initated coverage on one-stop sustainable energy and engineering solutions specialist Kinergy Advancement Bhd with a “buy” rating and a target price of 67 sen or a +71.8% premium over its 39 sen closing price yesterday (July 21).
The 67 sen is derived by applying the sector peer average PE multiple of 22.7x to the research house’s FY2028F core net profit of RM64 mil which is supported by a three-star ESG (environment, social and governance) rating.
“Kinergy is the only listed Malaysian energy company offering all four solution pillars – (u) renewable energy, (ii) clean energy, (iii) energy efficiency and (iv) engineering services – simultaneously,” observed APEX Research in its initiating coverage note.
“This breadth enables cross-segment SELCO (self-consumption) project wins that pure-play competitors can’t match and drives an 80% proprietary project win rate that translates into structurally superior margins and minimal competitive friction.”
This coverage initiation marks Kinergy’s first institutional research coverage which further recognises its diversified business model spanning EPCC (engineering, procurement, construction and commissioning) development, renewable energy asset ownership and independent power producer (IPP) participation.
Under-priced biz segments
Other key attraction of Kinergy from Apex Research’s perspective lies in its “under-appreciated earnings floor” as evident from its zero-CAPEX asset portfolio (28MW operational) which generates a recurring concession-based income stream that grows independently of order book replenishment.
“The PKNPK partnership (1,800MW Perak pipeline), the Permodalan Kedah river and dam site rights represent a multi-year runway to expand this recurring income base materially,” enthused Apex Research.
Likewise, the research house foresees “an under-appreciated second growth engine” emanating from the hyperscale data centre roll-out across Malaysia which is driving MEP (mechanical, electrical and plumbing) demand that Kinergy’s established engineering credentials position it well to capture.
“Moreover, the group’s meaningful IPP optionality remains unpriced,” asserted Apex Research.
Kinergy holds an effective ~41% indirect economic interest in the Perlis CCGT site through its 51% stake in Jati Cakerawala which is partnered with Thailand’s B.Grimm Power for the development of a new 1.5GW combined-cycle gas turbine power plant.
The Energy Commission issued an Initial Letter of Notification in January 2026 – a formal regulatory milestone.
We model zero contribution in the long-term cashflows of this project in our base case, making this meaningful IPP optionality that remains entirely unpriced in our 67 sen target price.
All in all, Kinergy boasts a recurring income base distinct from contract earnings. Apex Research highlights Kinergy’s established asset portfolio – 28MW of operational solar, hydro, biogas and clean energy assets – which generates concession-style recurring income independent of order book cycles.
Ther research house further argued that the group’s earnings floor is valued by the market as if it were conventional contracting revenue, thus identifying a progressive re-rating toward concession-asset multiples as the core medium-term catalyst.
Apex Research also pointed to Kinergy’s RM1.0 bil unbilled order book as of end- March 2026 – a 2.09x cover ratio against its FY2025 revenue which provides about two years of earnings visibility.
“Of this, about RM320 mil is expected to be recognised in FY2026 as projects enter their peak billing phases,” revealed the research house.
“The tender pipeline of approximately RM2.0 bil spanning solar, biogas and CCGT (combined-cycle gas turbine) projects represent the next leg of order book replenishment subject to award conversion rates.” – July 22, 2026
