This came on the heels of the award of a RM24mil contract for the supply of polymerase chain reaction (PCR) kit (more widely known as
Covid-19 test kits) last month.
However, at current valuations of 21x FY23F earnings, the research house said its upside is capped.
It maintained its fair value of RM2.57 based on 230x FY23 earnings per share, in line with the valuations of leading renewable energy players globally.
"While these developments show that KPower is slowly gaining a foothold in the healthcare segment, the contribution from the new business
will remain insignificant during our forecast period and hence we are keeping our forecasts," it said.
The research house added that it is more encouraged by KPower bagging new renewable energy EPCC contracts of RM543.3mil year-to-date in FY21, which boosts its outstanding contruction order book to RM1.6bil.
It maintained its construction job wins assumption of RM1.4bil annually for FY21-FY23, which is slightly lower than KPower's guidance of RM2bil for FY21.