Wasco Greenergy
Wasco Greenergy Bhd (GENERGY) is one of the top biomass power equipment EPCC companies in Malaysia and Indonesia.
Wasco Greenergy Bhd (GENERGY) is one of the top biomass power equipment EPCC companies in Malaysia and Indonesia. This encompasses boilers that are fabricated in-house and the distribution of Shinko steam turbines. GENERGY differentiates itself from its direct competitor, BM Greentech, by providing engineering for customized solutions. It will further differentiate itself by venturing into asset ownership of biomass-to-steam systems for industrial customers.
About the stock
GENERGY is listing on the main board of Bursa Malaysia and will be a Shariah compliant stock. It is a renewable energy spin-off from its listed O&G-focused parent, Wasco Bhd, which retains a 62.5% stake. GENERGY is a professionally-managed company with a majority independent board.
Investment thesis
GENERGY is an early-stage opportunity to invest in a high-growth renewable niche of biomass-for-steam power. Not just as an EPCC, but as an asset owner. Between the abundant and under-utilized biomass supply and the estimated 30% cost savings compared with natural gas-powered steam, which we estimate to be an RM2-3bn market. Thematically, GENERGY will be a strong ESG play as it helps customers decarbonize while decoupling from global energy commodity prices.
Key risks
Execution risk: By far the biggest hurdle will be securing the first greenfield biomass-to-steam contract and subsequently delivering on the expected payback period of 5 years. GENERGY has no track record with asset-ownership.
Competition: GENERGY has sizable EPCC competitors in the space. While
some lack direct engineering capability, they have the resources and balance
sheet to close the gap and compete for the same assets.
Feedstock: The business model counts on biomass remaining at least cheaper than conventional fuels. Competing use for biomass that threatens feedstock prices would upend the business model.
IPO information
WASCO GREENERGY
GENERGY MK - 5343.KL
BUY
Target price: RM1.30
IPO price: RM1.00
Market cap: RM500m
IPO shares / total shares: 150m / 500m
New shares vs offer-for-sale: 50:50
Funds raised: RM75m
Float: 30%
Investment fundamentals
| RMm (end-dec) | FY24A | FY25E | FY26E | FY27E |
|---|---|---|---|---|
| Revenue | 277 | 272 | 303 | 341 |
| Revenue (YoY) | -4% | -2% | 11% | 13% |
| Adj PATAMI | 30.6 | 31.4 | 35.3 | 41.6 |
| Adj PATAMI margin | 11% | 12% | 12% | 12% |
| DPS (sen) | - | 1.3 | 2.1 | 2.5 |
| ROA | 10% | 9% | 8% | 8% |
| ROE | 18% | 12% | 12% | 13% |
| PER | 10.7 | 15.9 | 14.1 | 12 |
| P/BV | 2.2 | 1.9 | 1.7 | 1.5 |
| Yield | 0% | 1% | 2% | 2% |
| Net debt/Equity | 26% | 16% | 18% | 19% |
Source: Company data, NPS Research, December 2025
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