Technical Outlook

Trendline breakout. KJTS had staged a breakout above its one-year downtrend, supported by the price forming a bullish crossover above all its converging EMAs. The price had also formed a higher low following a double bottom formation, indicating a positive reversal and continuation. Momentum remains robust as RSI edges higher above 50 while the MACD forms a rounding bottom formation. This suggests a potentially exponential breakout, which we expect to reach and RM1.14 and RM1.32 respectively should momentum remain. On the downside, a break below RM0.920 would invalidate this setup.

Trading Catalysts 

• Multi-decade concession wins in Thailand. Securing four 20-year cooling contracts with Centel locks in ~RM48m in high-margin recurring O&M revenue alongside upfront works in Sep-2026. This multi-year cash flow visibility reinforces regional scale and underpins an upward valuation re-rating.
• Margin expansion via energy efficiency. Momentum is poised to accelerate into 2H, propelled by accretive contributions from iHandal’s waste-heat recovery solutions. Expanding operating margins and higher-quality recurring income justify valuation multiple expansion alongside the breakout.
• Data centre cooling & institutional support. Expanding into mission-critical cooling for regional data centres leverages NETR decarbonisation mandates. Backed by marquee institutional partners like KWAP, growing contract momentum provides the requisite liquidity to absorb overhead supply and sustain the breakout.