KUALA LUMPUR (July 22): Kinergy Advancement Bhd (KL:KINERGY) is set for an earnings jump this year to a new record high as projects in hand generate peak revenue, a research house said.

The energy services firm may see its net profit surging 46% to RM41 million this year from a year earlier, according to Apex Securities’ estimates. Nearly one-third of its RM1 billion unbilled jobs to be booked this year as projects enter their peak billing phases, the house noted.

Earnings growth will continue to accelerate, reflecting contract conversions from the current tenderbook and initial contributions from its project pipelines in Kedah and Perak, Apex Securities said in a note.

Apex Securities, the sole research house covering Kinergy, recommends a ‘buy’ with target price of 67 sen that implies a potential upside of 72% from current price.

Formerly known as Kejuruteraan Asastera Bhd, Kinergy mainly provides renewable energy services, ranging from installing solar panels to energy saving systems, as well as mechanical-and-electrical engineering.

Shares of Kinergy have barely budged this year even as larger rivals charged ahead, as prices of fossil fuels jumped with geopolitical conflict in the Middle East.

However, no single stock on Bursa Malaysia offers Kinergy’s combination of renewable energy, clean energy, energy efficiency, and full engineering services simultaneously, Apex Securities highlighted.

The breadth drives an 80% project win rate “that translates into structurally superior margins and minimal competitive friction,” the house pointed out.

“We see a compelling entry point” at the current price of 39 sen that values the company at just 21 times its projected 2026 earnings, compared to Solarvest Holdings Bhd's (KL:SLVEST) earnings multiple of 25 times.