KJTS
KJTS’ core business is providing cooling energy services via large-scale district cooling systems.
KJTS’ core business is providing cooling energy services via large-scale district cooling systems. The company bears the capex to upgrade existing cooling systems to improve energy efficiency, offering clients immediate savings with no capital outlay. KJTS books the EPCC revenues as well as enjoying the surplus energy savings and the facilities management over a long-term contract. In turn, KJTS’ secured business has direct leverage to energy prices and long-term growth is tied to securing new projects.
About the stock
KJTS is a Shariah compliant stock that was listed in 2024 in the ACE market. In our view, KJTS is misclassified as an industrial products and services company. It might be better to think of KJTS as a utility or energy stock.
KJTS was originally the Asean arm of Dalkia Group, prior to a management buyout in 2014 by Lee Kok Choon and Sheldon Wee - both currently the key management and controlling shareholders (combined).
Investment thesis
KJTS offers a unique exposure to energy efficiency for large scale cooling
infrastructure, including datacenters. We see deep value in the group’s long-term growth potential, against a backdrop of global warming and energy price inflation. The recent kicker for the group is the change in its capital model - from purely self-funding to relying on strategic partners like Stonepeak to supply capital, without significant compromise on earnings accretion. At this juncture, we recommend KJTS as a Trading Buy.
Key risks
- Failure to secure new projects - will severely limit growth. Acquisitions could be lumpy and intermittent.
- Dependency on partners - the joint venture with Stonepeak is a lynchpin to our thesis. If the partner(s) choose to withdraw from the joint venture, it would hurt KJTS’ growth prospects.
- Execution risk - failure to meet expected energy efficiency targets could result in lower or even negative returns on a project.
Stock information
KJTS
KJTS - 0293.KL
TRADING BUY
Target price: RM2.00
Last price: RM1.67
Market cap (RMm): RM1,150m
Shares out: 689m
52-week range: RM0.62 / RM1.76
3M ADV: RM1.8m
T12M returns: 152%
Share price performance
Investment fundamentals
| RMm | FY24A | FY25E | FY26E | FY27E |
|---|---|---|---|---|
| Revenue | 138 | 186 | 222 | 280 |
| Revenue Growth | 15% | 35% | 20% | 26% |
| EBITDA | 12 | 28 | 35 | 44 |
| EBITDA margin | 9% | 15% | 16% | 16% |
| PATAMI | 15 | 21 | 30 | 42 |
| PATAMI margin | 11% | 11% | 13% | 15% |
| ROA | 10% | 12% | 13% | 15% |
| ROE | 13% | 16% | 19% | 23% |
| PER | 70 | 51 | 36 | 26 |
| P/BV | 9.2 | 8.2 | 7.0 | 5.9 |
| Yield | 0.0% | 1.0% | 1.0% | 2.0% |
Source: Company data, Bloomberg, NewParadigm Research, August 2025
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