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🔹 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.
