Midwestern Investor
· The Midwestern Investor
· June 03, 2026 at 18:56
· ⏱ 3 min read
| Read on Substack ↗
Summary
KJTS Group's 'cooling as a service' model is derisked by partnering with institutional investors to absorb capex, enabling rapid scaling and 20-year recurring revenue streams. The company is positioned to capitalize on Southeast Asia's data center and medical infrastructure boom, but the author does not disclose a personal position.
•KJTS formed Lestari Cooling Energy with Stonepeak and KWAP where the institutions hold 90% ownership, relieving KJTS of balance sheet risk.
•Lestari operates under 20-year BOOT agreements, giving KJTS exclusive engineering contracts and two decades of recurring revenue per project.
•KJTS reported +54% YoY revenue growth in 2025, with cooling energy segment up +97% YoY.
•The company has partnered with China Construction Yangtze River for data center and infrastructure projects across five Southeast Asian countries.
•The Southeast Asian data center market is projected to grow from $13.7B in 2024 to $30.5B by 2030 (14.2% CAGR).
•KJTS has an agreement with Penang Development Corporation for the 236-acre Penang Medi-City medical hub, planned for completion in 2040.
The article is a detailed bullish thesis on KJTS Group, highlighting derisking via institutional partnerships, scalable recurring revenue, and exposure to high-growth data center and medical infrastru
The article is a detailed bullish thesis on KJTS Group, highlighting derisking via institutional partnerships, scalable recurring revenue, and exposure to high-growth data center and medical infrastructure in SE Asia. No trade disclosure, but the argument implies upside potential.
Risk: Dependence on Lestari's capital deployment; BOOT agreements tie cash flows to project execution and counterparty health.
Author explicitly compares KJTS to iCents, stating both 'benefit from the massive growth in tech infrastructure across Southeast Asia.' This frames iCents as an implied beneficiary of the same secular
Author explicitly compares KJTS to iCents, stating both 'benefit from the massive growth in tech infrastructure across Southeast Asia.' This frames iCents as an implied beneficiary of the same secular trend, though no position is disclosed.
Risk: Small-cap liquidity and Malaysia-specific regulatory/political risks.
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