KUALA LUMPUR (Aug 18): Kee Ming Group Bhd’s (KL:KEEMING) recently-ended quarter may turn out soft as margins at the engineering services firm declined, an analyst said.

Earnings could come in at RM5 million to RM7 million in April-June quarter versus RM9 million in January-March when Kee Ming benefitted from cost savings, according to Maybank Investment Bank in a note. Kee Ming’s fiscal years end on March 31, and earnings had surged 167% to RM22 million in FY2026.

“Nevertheless, this is in line with our expectations as we anticipate stronger progress billings” from jobs on hand totalling RM243 million in subsequent quarters, Maybank Investment said.

The research house also downgraded Kee Ming to ‘hold’ from ‘buy’ on valuation ahead of its results announcement by the end of this month.

Shares of Kee Ming, specialising in mechanical and electrical engineering services catering to industrial projects, have jumped more than six times since its listing in February to RM2.40. The rise catapulted its market capitalisation to RM780 million.

Kee Ming is trading at about 21 times its forward earnings, ahead of its closest peer MN Holdings Bhd (KL:MNHLDG) valued at multiple of 17 times, while the sector valuations have climbed strongly since April 2026 thanks to robust project newsflow.

Further rerating catalyst would require stronger-than-expected order replenishment and margins, Maybank Investment said, noting that Kee Ming is tendering for projects worth RM2.2 billion at the end of August, signalling strong replenishment opportunities ahead.

Kee Ming is also actively seeking for opportunities to penetrate into high-voltage substations for data centres and potentially tap Tenaga Nasional Bhd’s (KL:TENAGA) power infrastructure projects, the house added.