13/03/2026

BIZ & FINANCE FRIDAY | MAR 13, 2026

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CIMB tips KJTS to post stronger FY26 earnings, win new contracts KUALA LUMPUR: CIMB Securities Sdn Bhd expects KJTS Group Bhd to experience stronger earnings in FY26, supported by higher contributions from recent contract wins. The bank-backed research firm is also confident that KJTS Group will secure new contracts in the group’s cooling energy (CE) space through Lestari Energy Sdn Bhd, its JV with Stonepeak, amid rising demand for energy-efficient solutions in its three key markets, namely, Malaysia, Thailand, and Singapore. CIMB Securities said traction for CE in Thailand and Singapore is expected to improve, driven by deeper client engagement, favourable national policies (Singapore), and increasing cross-selling opportunities. “KJTS is also constructive on its acquisition of a 70.7% stake in iHandal (IHSB), which comes with a RM3 million per annum profit guarantee for 2026–28. “We view the deal positively as IHSB’s waste heat recovery capabilities complement KJTS Group’s CE franchise, facilitating the group’s expansion from predominantly Cooling-as-a Service offerings towards broader Energy-as-a Service (EaaS) solutions. “We also see tangible cross-selling optionality (KJTS Group’s commercial base [malls/hotels] and IHSB’s industrial client pool),“ the research firm said. On earnings, CIMB Securities said KJTS Group’s FY25 revenue rose 54.2% year-on-year, driven mainly by stronger contributions from its CE segment, which surged 97.9% YoY and accounted for 60.9% of FY25 revenue, as well as its cleaning services segment, which grew 19% YoY and made up 32.7% of revenue. The research firm said recurring income remained the core earnings base at 54% of FY25 revenue, while non-recurring income (46%) trended higher as newly secured jobs progressed through the EPCC phase. By segment, CE delivered the highest profitability with a 30.3% GP margin, followed by facilities management (21%) and cleaning services (16%). FY25 core net profit rose 31.5% YoY to RM19.8 million, including one-off costs of RM1.6 million linked to the failed Malakoff Utilities acquisition. “Excluding this non-recurring item, we estimate FY25 core net profit would have risen by 21% YoY to RM18.2 million,“ CIMB Securities said.

OGX bags RM72m deals, targets Sabah expansion Tan Suan Loong (third from left) and non-independent non-executive chairman Tan Ting Fong (fourth from right), with other representatives at the listing ceremony.

o Company raises RM52.5m from IPO to fund expansion, new facility and broader brand portfolio

primarily serving system integrators that deploy IT solutions for public and private sector organisations. The company fell about 20% on its maiden trading day on Bursa Malaysia’s ACE Market yesterday amid a broader market decline. The counter opened at 28 sen, compared with its initial public offering (IPO) price of 35 sen per share. OGX raised RM52.5 million from its listing to fund expansion initiatives, supported by Malaysia’s growing IT infrastructure market. Of the total proceeds, 57.14% will be allocated for the acquisition and renovation of a new facility, 4.76% for expanding its portfolio of IT infrastructure brands, and 3.81% for geographical expansion into East Malaysia. A further 8.57% will be used to repay bank borrowings, while 16.19% will be allocated for working capital to support operational activities. The remainder will be used for listing-related expenses. At an issue price of 35 sen, OGX had a market capitalisation of RM262.5 million upon listing. UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

plans to strengthen its presence in the state by hiring additional technical and sales personnel and by placing key products closer to customers. “We will be hiring additional technical and sales staff there, and we will also place some of our primary products in the state,” Tan said. He added that Sabah represents a promising growth opportunity for the group, with the company targeting double-digit growth from the market. Meanwhile, Tan said OGX expects its new facility located near its existing premises in Bukit Jelutong, Selangor, to be operational by mid-2027. “We have targeted a site close to our current facility, probably three to five minutes away. We are aiming for completion around mid-2027,” he said. OGX provides enterprise IT infrastructure solutions covering networking, cybersecurity and enterprise data centre infrastructure,

KUALA LUMPUR: OGX Group Bhd has secured RM72 million worth of projects as of Jan 13, as the IT infrastructure solutions specialist expands its presence in East Malaysia. Managing director Tan Suan Loong said some of the projects are located in Sabah, where the group has been gaining traction across several sectors. “In Sabah, we are involved in a few sectors, including the police and education segments. We have secured several good projects there and are working on more upcoming opportunities,” he told a press conference following the company’s listing on the ACE Market of Bursa Malaysia yesterday. However, the group does not maintain a formal order book as its projects do not follow fixed implementation timelines. To support its expansion in Sabah, OGX