This article first appeared in Capital, The Edge Malaysia Weekly on February 9, 2026 - February 15, 2026
PERAK-based Kee Ming Group Bhd (KL:KEEMING) expects to be better positioned to undertake more mechanical and electrical (M&E) engineering projects and bolster its order book, once armed with RM20.32 million in net proceeds from its ACE Market debut on Feb 12.
More than two-thirds of its gross initial public offering (IPO) proceeds of RM25.32 million (including RM5 million listing expenses) have been earmarked to support future projects — RM13 million (51.3%) for project working capital, RM4 million (15.8%) project performance bond and RM1.7 million (6.8%) to expand its project team, leaving about RM0.6 million (2.4%) for general working capital.
Kee Ming’s portfolio is predominantly industrial-focused, with a customer base that includes Tier 1 contractors such as Sunway Construction Group Bhd (KL:SUNCON) and Gamuda Bhd (KL:GAMUDA), reflecting its execution capability for complex projects.
A 23.85% associate company of Solarvest Holdings Bhd (KL:SLVEST), Kee Ming provides engineering services, including electrical works and installations, air conditioning, ventilation systems and fire protection systems. It also provides engineering works for energy infrastructure, such as installing solar panels and electric vehicle charging stations.
Kee Ming is expected to have a market capitalisation of RM123.5 million at its IPO price of 38 sen. It is selling 66.63 million new shares for its listing exercise, which also involves an offer for sale of 16.25 million shares, with the proceeds going to its selling shareholder and managing director, Liew Kar Hoe.
Liew’s shareholding will be diluted from 70% to 50.65%, a stake under a six-month moratorium. He needs to retain a stake of at least 45% in the second half of the first year post-IPO, 30% in the second year of listing and 15% in the third year of listing, the IPO prospectus shows.
In a non-rated note, Malacca Securities said the fact that Solarvest is Kee Ming’s second-largest shareholder enhances the latter’s hand for larger-scale project tenders. The research outfit also sees Kee Ming indirectly benefiting from Solarvest’s expansion into data centres and large-scale industrial projects, where Kee Ming’s M&E engineering capabilities could be leveraged for project execution.
Malacca Securities ascribed a fair value of 69 sen on Kee Ming, based on 15 times mid-FY2027 (financial year ending March 31, 2027) earnings per share (EPS) of 4.6 sen. It expects Kee Ming’s earnings to grow at a three-year compound annual growth rate (CAGR) of 31.1%, with core earnings reaching RM10.1 million to RM18.4 million over the next three years, underpinned by larger-scale interconnection facilities, recognition of an unbilled order book and supportive government policies like the New Industrial Master Plan 2030 and the National Energy Transition Roadmap.
Kee Ming has an unbilled order book of RM176.1 million (over 64 projects), representing 2.8 times cover over FY2025 revenue. Most projects have a completion timeline of 12 to 24 months, with RM55.6 million expected to be recognised in FY2026 and the rest in FY2027.
“By offering specialised M&E services such as HV/MV (high-voltage/medium-voltage) electrical installations, electrical substation and solar PV (photovoltaic) installation, the group could ride the country’s industrialisation, data centre investments and renewable energy growth trend,” said Malacca Securities.
Apex Securities also ascribed 15 times multiple on FY2027 estimated earnings, but arrived at a more conservative target price of 57 sen.
Based on historical win rates of 15% to 20%, Apex said the group could potentially secure incremental order wins of RM100 million to RM140 million against its tender book of RM700 million — of which 40% are higher-value projects, predominantly from industrial developments, including data centre-related projects.
“In line with IMR’s (independent market research’s) projected 11.9% CAGR for Malaysia’s M&E engineering services market over the next four years supported by the group’s execution track record, we forecast core earnings two-year CAGR of 19.9% over FY2026-FY2028,” it explained.
Kee Ming’s balance sheet remains healthy, with a gearing ratio of 0.3 times as at September 2025. The company does not currently have a dividend policy.
RHB Research ascribed a fair value of 52 sen on Kee Ming based on 11 times FY2027 earnings. Noting geographical concentration in Perak and Penang, RHB expects a 15% success rate on tender books, which it sees translating into RM110 million in potential job wins for FY2027.
PublicInvest Research ascribed a lower fair value of 51 sen for Kee Ming, based on an 11 times 2026 EPS of 4.6 sen, representing a 20% discount to the average price-earnings ratio of 14 times for selected Malaysia-listed peers.
“Despite its diversified customer base and attractive profit margins, we believe the discount is justified, given Kee Ming’s relatively small market capitalisation,” the research house explained, forecasting the group’s earnings to grow at a three-year CAGR of 28%, supported by its ability to secure jobs primarily as a main contractor.
Investment risks include Kee Ming’s reliance on subcontractors for part of its operations, with subcontracting costs accounting for 33.6% to 44.4% of total purchases over FY2022 to 6MFY2026, which may expose it to execution and cost control risks, said Apex Securities.
In addition, higher copper, aluminium and steel prices between tender submission and project execution may adversely impact project margins, particularly for fixed-price contracts.
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