PETALING JAYA: Analysts have maintained a positive view on Steel Hawk Bhd
, amid the group’s subcontract win in Sabah via its wholly-owned subsidiary Steel Hawk Engineering Sdn Bhd.
TA Research has a “buy” rating on Steel Hawk, with an unchanged target price of 37 sen per share.
The research house had valued the group’s stock at 8.5 times its financial year 2026 (FY26) forecast earnings, while factoring in a 3% premium for its environmental, social and governance profile.
“Overall, we see this as supportive to business sustainability rather than a near-term earnings catalyst,” it said.
Although the subcontract is not expected to materially impact Steel Hawk’s net assets in its financial year 2026 (FY26), the research house noted that it would nonetheless contribute positively to the group earnings.
Notably, TA Research highlighted the contract did not expose Steel Hawk to new operational risks, as it falls within its primary expertise.
“The win reinforces Steel Hawk’s track record in fire protection and safety-related engineering works, while strengthening its order book visibility in Sabah and Sarawak,” it said in a note to clients.
TA Research has also maintained its earnings forecast for FY26-FY27, due to a lack of visibility on contract value and work order flow.
It indicated the upside risk should remain, if call-out volumes trend higher than expected, particularly if project activity in Sabah accelerates over the contract period.
Steel Hawk Engineering Sdn Bhd had secured a subcontract from Eternity Mode Sdn Bhd for the procurement, construction and commissioning of fire-rated doors for the Sabah region.
The contract lifespan is two years and nine months, beginning from Jan 20, 2026 to Oct 31, 2028.
