Good Morning All,
We issued a 2Q26 results note on our coverage stock KJTS Group Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Earnings above expectations. 2Q26 core PATMI surged 75.4% QoQ and 79.3% YoY to RM8.1m. 1H26 core PATMI reached RM12.7m (+45.2% YoY), accounting for 63.4% of our and 61.0% of consensus full-year forecasts (RM20.0m/RM20.8m), driven by faster revenue recognition from the Energy Services segment.
📌 QoQ/YoY. Revenue surged 57.7% QoQ and 100.1% YoY to RM88.2m. QoQ growth was led by a 95.7% expansion in Energy Services revenue to RM68.7m, offsetting a 6.2% decline in Integrated Facilities Management (RM19.5m). YoY core PATMI rose 79.3% despite a higher effective tax rate (24.3% vs 15.4% in 2Q25).
📌 YTD. 1H26 revenue increased 59.0% YoY to RM144.1m, while PBT grew 75.9% YoY to RM17.7m as Energy Services expanded to 72.0% of group revenue. Core PATMI grew 45.2% YoY to RM12.7m, with growth moderated by a higher effective tax rate (26.3% vs 12.6% in 1H25).
📌 Outlook. We remain positive on KJTS, supported by tailwinds such as structural cooling demand from Malaysia’s energy transition policy, MIDA's RM92.8bn approved investments (including RM34.6bn in data centre/cloud projects), and strategic platform expansion into heat recovery via the iHandal acquisition.
📌 Forecast. We maintain our FY26f–27f earnings forecasts at RM20.0m/RM27.0m pending further guidance from the upcoming analyst briefing.
📌 Rating UNDER REVIEW, TP RM0.87. We place our rating Under Review while maintaining our Target Price at RM0.87 for now, which implies a 22.3% capital downside from the share price of RM1.12.
M+ Global Research Team
28 August 2026
August 28, 2026 1.4K 7
