PETALING JAYA: ES Sunlogy Bhd (ESS), en route to a listing on the ACE Market of Bursa Malaysia, is expected to register core earnings of RM16.5mil, RM18.1mil and RM21.3mil for financial years 2025 (FY25) to FY27, respectively.
The earnings are set to grow 21.5%, 9.3% and 18% for the three FY respectively and be driven by the expansion of its renewable energy (RE) business and participation in the large-scale solar five or LSS5 programme besides securing more solar projects, TA Research said in a report on the company.
ESS plans to pursue high-value projects within the mechanical and electrical engineering services sector.
It is also expanding into the RE sector.
ESS’ initial public offering (IPO) entails a public issue of 140 million new ordinary shares and an offer for sale of 70 million shares at an IPO price of 30 sen a share.
This accounts for 30% of the group’s enlarged issued share capital, it said.
The research house added that the company’s financial position is expected to improve with its net gearing ratio easing from 1.19 times to 0.47 times post-listing with the utilisation of fresh proceeds of RM42mil.
At 30 sen a share, ESS is priced at a trailing price earnings ratio (PER) of 15.4 times FY24 core earnings per share (EPS) of 1.9 sen.
TA Research has ascribed a target PER of 14 times 2026 EPS in line with its peers’ average two-year forward PER, arriving at a fair value of 42 sen a share.