Background

KJTS Group Bhd (KJTS) is principally engaged in building support services, which include providing cooling energy (CE), cleaning and facilities management (FM) services. In addition to providing cooling energy management services and engineering, procurement, construction and commissioning (EPCC) for new, retrofitting and/or upgrading of cooling energy system, KJTS also offers facilities management services that focus on repair and maintenance of buildings and mechanical & electrical (M&E) equipment.

IPO Statistic

The IPO entails a public issue of 218,027,200 new ordinary shares at an IPO price of RM0.27/share, which account for 31.7% of the group’s enlarged issued share capital.

Public Issue:

• 34,400,000 new shares for application by the Malaysian public;

• 15,000,000 new shares for application by eligible parties, and

• 168,627,200 new shares for private placement to selected investors.

Main Competitive Advantages

1. Full-fledged cooling energy efficiency solution provider in Malaysia;

2. Cross selling of synergistic building support services to customers; and

3. In-house engineering and central command centre for support of CE systems.

Valuation

At an IPO price of RM0.27/share, KJTS is priced at a trailing PER of 27.1x FY22 core EPS. We value the company at 13x CY25 EPS, arriving at a fair value of RM0.29/share. Not Rated.

Source: TA Research - 10 Jan 2024