PETALING JAYA: Engineering services company Kelington Group Bhd
’s earnings momentum for the fourth quarter of this year (4Q25) and beyond remains positive on the back of demand for technology solutions with higher margins following earnings results for 3Q25 that were broadly in line with expectations.
The company also declared a 1.5 sen special dividend on top of the regular 2.5 sen interim payout, bringing the total dividend per share year-to-date to nine sen compared with six sen a year ago.
Analysts believe the group’s earnings continue to have upside potential, with RHB Research noting that its earnings prospects are well supported by a robust order book of more than RM1.6bil and sizeable RM4.5bil tender book, driving a compounded annual growth rate of 14% from year to 2027.
“We view the recent share price weakness as a healthy correction following the strong rally year-to-date,” the research house said.
Support for the share price will come from Kelington’s record tender book, solid earnings delivery and the long-term earnings upside from the carbon capture and utilisation business, which the market has not priced in, RHB Research added.
It maintained a “buy” call on the stock with a target price of RM6.10.
