Kerjaya Prospek's to expand into RE engineering via ES Sunlogy
KUALA LUMPUR: Kerjaya Prospek Group Bhd’s increased stake in ES Sunlogy Bhd provides the construction group with an opportunity to be involved in growing the prospects of the latter’s engineering and renewable energy (RE) businesses.
KUALA LUMPUR: Kerjaya Prospek Group Bhd has bolstered its stake in ES Sunlogy Bhd, signaling its interest in the construction group's engineering and renewable energy (RE) businesses. RHB Research, after examining the situation, highlighted potential future collaborations between the two firms. Prior to Kerjaya Prospek's stake purchase, the company had already collaborated with ES Sunlogy on supplying, delivering, installing, testing, and commissioning electrical voltage services for a high-rise project in Batu Kawan, Penang.
On August 14, Acumen Marketing Sdn Bhd, a wholly-owned subsidiary of Kerjaya Prospek, became the largest shareholder in ES Sunlogy, amassing 28.27% of the company's shares from 9.09% following the acquisition of 147.7 million shares. The price paid for the shares was 27.2 sen, representing a 28.4% discount from ES Sunlogy's closing price of 38 sen on August 13. This acquisition totaled RM40.2 million.
ES Sunlogy specializes in M&E engineering services for electricity supply distribution systems and buildings, as well as generating and selling renewable energy through its 20.8MWac Junjong large-scale solar photovoltaic project in Kedah. As of July 31, 2025, the company had an outstanding orderbook valued at RM180 million. For the financial year 2026 (FY26), ES Sunlogy has secured RM220 million in new contracts, including three deals from a Singapore-based client.
With Kerjaya Prospek now holding a 28.3% stake, RHB Research forecasts the group will have significant influence over Sunlogy and will recognize its share of the company's profit under the equity method. RHB Research projects Kerjaya Prospek's share of Sunlogy's profit at RM1.5 million for the remaining months of 2026, RM5 million in 2027, and RM6 million in 2028.
The firm also raised Kerjaya Prospek's earnings estimates by 1% for the current financial year and by 2% for the following years, 2027 and 2028.
RHB Research maintains a "Buy" recommendation on ES Sunlogy's stock and has raised its target price to RM3.41 from RM3.33, indicating a 25% upside and an estimated 5% financial year 2027 yield. At the noon break, Kerjaya Prospek's shares were trading at RM2.74 each.
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