· KERJAYA, via wholly-owned subsidiary Acumen Marketing Sdn. Bhd., acquired a further 2.73% for RM5.36m, raising its stake to 31.0%.
· The acquisition was made at RM0.255/share, implying 1.49x P/B and 22.3x PE versus 2.34x P/B and 33.1x PE at market. We view the valuation as fair.
· The enlarged stake strengthens KERJAYA's M&E and renewable-energy exposure.
· The investment remains manageable from a balance-sheet perspective, with cumulative investment of RM64.31m representing c.28% of FY26F cash.
· Maintain BUY with an unchanged TP of RM3.38, based on 15.0x PE applied to a FY27F EPS of 22.5 sen.
Acquired Additional 2.73% Stake in ES Sunlogy for RM5.36m. KERJAYA, through its wholly-owned subsidiary Acumen Marketing Sdn. Bhd., has acquired an additional 21m ordinary shares, representing a 2.73% equity interest, in ES Sunlogy Berhad, through direct business transactions at an average purchase price of RM0.255 per share, for a total consideration of RM5.36 million. This follows two earlier tranches: an initial subscription for 70.0m new shares, a 9.09% stake, for RM18.76 million in July 2026, and a 19.18% follow-on acquisition of 147.7m shares for RM40.18 million on 14 August 2026. Following completion of this latest tranche, KERJAYA's cumulative equity interest in ES Sunlogy has risen from 28.27% to 31.00%, with total cumulative investment across all three tranches now standing at RM64.31m.
Implied Valuation of the ES Sunlogy Stake. KERJAYA's cumulative investment of RM64.31m for a 31% stake implies an equity value of approximately RM207.5m for 100% of ES Sunlogy, based on 770.0m shares issued. This compares with ES Sunlogy's actual market capitalisation of approximately RM308.0m at its 14 August 2026 closing price of RM0.40, implying KERJAYA's blended acquisition value sits at roughly a 32.63% discount to the prevailing market valuation. This latest tranche alone was transacted at a steeper 36.15% discount to the 14 August closing price – the widest discount of the three tranches to date.
On a PE basis, using the same annualised 9M FY26 PAT run-rate of c.RM9.3m for both sides, KERJAYA's acquisition implies a PE of approximately 22.3x, versus approximately 33.1x for ES Sunlogy's prevailing market valuation – a discount of roughly 32.63%, consistent with the price discount above. On this basis, we view the acquisition valuation as fair.
As a secondary cross-check, we also compare the transaction on a book value basis. The latest acquisition price of RM0.255/share represents approximately 1.49x ES Sunlogy's reported NAV/share of RM0.171 as at 30 April 2026, compared with 2.34x P/B based on ES Sunlogy's prevailing share price of RM0.40 – a discount of roughly 36.32%, directionally consistent with the price discount KERJAYA disclosed.
Our View. Based on ES Sunlogy’s annualised 9MFY26 PAT of RM9.3m, KERJAYA’s acquisition of 31% stake implies a P/E valuation of c.22.3x, we think the deal is fair. While KPGB paid roughly 1.49x ES Sunlogy's reported NAV/share for the latest tranche, the shares were acquired at a 36.15% discount to ES Sunlogy's prevailing market price. With KERJAYA's stake now at 31%, we would also flag its increasing proximity to the more-than-33% threshold for a mandatory general offer, a dynamic worth monitoring should further stake-building continue at a similar pace. Strategically, the enlarged stake supports integrated M&E engineering and solar-related project delivery, which could potentially deepen collaboration opportunities across KERJAYA's own construction pipeline, including its growing exposure to data centre-related infrastructure work. The investment also benefits from ES Sunlogy's recurring renewable energy income alongside its project-based M&E engineering revenue, which supports medium-term earnings visibility.
Balance Sheet and Cash Flow Impact. On the balance sheet, cash and cash equivalents will fall by a further RM5.36m, offset by a corresponding increase in investment in ES Sunlogy. Total assets and shareholders' equity are unchanged at the point of acquisition, as this is purely an asset swap funded internally with no new debt raised. On the cash flow statement, the RM5.36m consideration will be reflected as an investing cash outflow, with no impact on operating cash flow from KERJAYA's construction business and no financing cash flow impact. Based on our FY26F cash balance before acquisition of about RM233.7m, this latest tranche represents roughly 2.3% of FY26F cash and about 0.4% of FY26F total equity of RM1.26bn. On a cumulative basis, KERJAYA's total investment in ES Sunlogy of RM64.31m represents approximately 28% of FY26F cash and about 5.1% of FY26F total equity. Given KERJAYA's strong balance sheet and net cash position, we continue to view the impact on net cash, gearing and liquidity as manageable, though the cumulative investment now represents a more meaningful, if still non-core, allocation of the Group's balance sheet capacity.
Earnings Revision. We have raised our FY27F/FY28F earnings forecasts further by 0.1%/0.1% respectively, to reflect the equity-accounted contribution from the 31% associate stake, assuming flat earnings growth over FY27F-FY28F.
Valuation & Recommendation. We maintain our BUY recommendation on KERJAYA with an unchanged TP of RM3.38, based on a 15.0x PE applied to a FY27F EPS of 22.5 sen, alongside a three-star ESG rating.
Risks. ES Sunlogy's operating performance, Rising material costs, labour shortages and oversupply of high-rise residential projects in the property sector.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.043919 | 4.076373 |
| EUR | 4.705873 | 4.710720 |
| CNY | 0.602129 | 0.602748 |
| HKD | 0.515672 | 0.519308 |
| SGD | 3.170391 | 3.192764 |