PETALING JAYA: Mitrajaya Holdings Bhd
is riding the data centre (DC) wave into a new growth phase, according to Apex Securities Research.
In its first coverage on Mitrajaya, the research house said DC exposure drives a structural earnings inflection for Mitrajaya.
The group secured its first DC contract in May 2024 – a RM86.6mil foundation works package from NextDC for the KL1 hyperscale campus – followed by a RM375.5mil main works contract in January 2025.
Following scope enhancements, alongside an additional RM54mil early works contract awarded in March 2026, Mitrajaya’s order book exposure to the KL1 project now stands at RM578mil.
The group’s order book stands at RM901mil, with earnings visibility through the financial year of 2028 (FY28).
KL1 will be Peninsular Malaysia’s first Tier 4-accredited DC above five megawatts (MW), with a total planned capacity of 65MW.
The project’s technical complexity, stringent delivery timelines, and high specification requirements underpin structurally higher margin potential relative to conventional building jobs.
“As Malaysia rapidly emerges as a regional digital infrastructure hub – driven by hyperscale and enterprise demand across Kuala Lumpur, Johor, and Selangor – we see strong potential for repeat orders and pipeline expansion, positioning Mitrajaya as a solid beneficiary of the DC buildout cycle.
“From our interactions with management, we believe that NextDC’s KL2 campus is potentially scheduled for award in 2026 to 2027 with three stages planned for a total of 150MW.”
Apex Securities said Mitrajaya’s “strong” earnings growth is backed by its order book and margin expansion.
It has forecast core earnings growth of 47.5% for FY26, followed by 29% (FY27) and 7.9% (FY28), driven by RM1.3bil annual order book replenishment and margin uplift as key projects progress.
Currently, Mitrajaya’s key projects include the NextDC KL1 campus, Avisena Specialist Hospital, and the Kedah Science and Technology Park, providing diversified exposure across healthcare, institutional, and commercial segments.
On the property division, Apex Securities said it is poised for a cyclical upturn, anchored by the Puchong Prima mixed development with RM1.5bil in gross development value (GDV).
The project will be rolled out in three phases, providing sustainable medium-term earnings visibility while diversifying the group’s income base beyond construction.
“Near-term catalysts include the Phase 1 launch (RM300mil GDV) in 2026, followed by a RM50mil residential development targeted for 2027.
“The group’s sizeable landbank of over 500 acres offers long-term monetisation upside, while unbilled sales of RM28.5mil provide a base level of near-term earnings support.
“Successful execution and take-up of initial phases could serve as a key re-rating catalyst, particularly as sales momentum strengthens,” Apex Securities said.
It has a “buy” call on Mitrajaya, with a target price of RM1.28 per share.
At press time, the stock traded at 59 sen.
