PETALING JAYA: KJTS Group Bhd
’s restructuring of its KIPMall cooling project is viewed positively as it makes the company more asset-light, allowing the group to reduce direct capital expenditure (capex) commitment while preserving its long-term operation and maintenance (O&M) and chilled water supply income.
Kenanga Research noted that KJTS has restructured its KIPMall cooling project by transferring the full asset ownership and capex role to Lestari Cooling Energy, its joint venture platform with Stonepeak and Retirement Fund (Inc) or KWAP, in which KJTS owns a 10% stake.
Under the new structure, Lestari issued a RM19mil letter of award to KJ Engineering for retrofit works at six KIPMall sites.
Five have been completed, with Desa Coalfields to be completed between May and July 2026.
KJTS will retain retrofit works for Kota Warisan and Kota Tinggi at RM4mil, while continuing to provide O&M and chilled water supply for all sites until July 2046.
“KIPMall marks the first asset project under the Lestari platform. With KWAP’s entry, we believe Lestari is better positioned to scale future cooling asset developments, supported by stronger institutional backing, funding capacity and access to government-linked opportunities.
“This creates a larger addressable pipeline and enhances KJTS’ job prospects as key technical partner for engineering, procurement, construction, and commissioning works and recurring O&M services.”
It maintained an “outperform” call for KJTS with a target price of RM1.34.
