Pekat is optimistic about the growth of DC-related jobs going into 2026, which would benefit the group’s ELP division.
PETALING JAYA: Pekat Group Bhd
’s prospects for 2026 are bright, buoyed by growth across all its operating segments.
MBSB Research in a report, after meeting up with the company’s management recently, said it is optimistic of the company’s prospects for next year.
The research house said this would be driven by sustainable growth across all its operating segments, riding on the growth in large-scale and rooftop solar, earthing and lightning protection (ELP) related jobs for data centres (DCs) and from EPE Switchgear (M) Sdn Bhd, specialising in the medium voltage category (11 kilovolts or kV and 33kV) where it competes mainly with four other companies in Tenaga Nasional Bhd’s supply chain.
Pekat owns a 60% indirect stake in EPE Switchgear.
The group’s commercial operation date (COD) target for its Corporate Green Power Programme (CGPP) asset is by April 2026.
Its 29.99 megawatt alternating current (MWac) solar farm is in Tronoh, Perak.
Recall that Pekat was also appointed as the engineering, procurement, construction, and commissioning contractor for the 29.99MWac CGPP solar farm owned by MF Solar Tronoh Sdn Bhd, an indirect wholly owned subsidiary of Mega First Corp Bhd.
The RM115mil project is now in its final legs and is expected to achieve COD by February or March 2026.
The research house said it also expects better demand for rooftop solar starting in the first quarter of financial year 2026.
Moreover, the management also expects demand for battery energy storage systems to pick up next year, especially among commercial and industrial clients.
At the same time, Pekat is optimistic about the growth of DC-related jobs going into 2026, which would benefit the group’s ELP division, at least over the next two to three years.
It recently secured a job from Gamuda Engineering Sdn Bhd for the ELP systems for a hyperscale DC at Eco Business Park V in Puncak Alam.
With the division’s current capacity, management guided the idea that it should be able to handle twice the value of jobs it has in hand currently.
DC jobs are among the main drivers for the stronger ELP performance in financial year 2025 (FY25), with a 46.3% year-on-year growth in revenue to RM47.7mil as at nine months of FY25.
Pekat has also been receiving green electricity supply enquiries from DCs via the Corporate Renewable Energy Supply Scheme and negotiations are ongoing, MBSB Research noted.
The research house is maintaining its “buy” recommendation on Pekat with an unchanged target price of RM2.00 per share.
