PETALING JAYA: Powerwell Holdings Bhd
’s core net profit is estimated to nearly double year-on-year in financial year 2027 (FY27), driven by expanded manufacturing capacity, doubled output in its Indonesian facility, strengthening execution and Malaysia’s data centre (DC) pipeline.
Apex Securities Research has forecast the group’s core net profit to rise from RM24.1mil in FY26 to RM43.7mil in FY27, and reach RM51.1mil in FY28, reflecting a two-year compound annual growth rate of approximately 45.7% across FY27 to FY28.
This growth is largely underpinned by key drivers the research house described as “locked in rather than speculative”.
“We see limited execution risk to this earnings path, with the RM120.7mil net cash position we forecast by FY28 providing further balance sheet flexibility should additional growth opportunities emerge,” it said.
It highlighted that Powerwell’s core net profit margin climbed from 12.3% in the first quarter (1Q26) to 17.9% in 4Q26.
“We view this progression as structural rather than one-off: it reflects steadily improving plant utilisation alongside a project mix increasingly weighted toward higher-value, technically demanding work,” the research house said.
It anticipates this earnings momentum to extend to FY27 to FY28 on the back of a healthy order book and tender pipeline.
Powerwell’s order book as of March 31, 2026 stood at RM150.8mil, with DCs and industrial/commercial/residential/renewable energy as the two largest categories.
With the expansion of its Serpong plant in Indonesia, which will add about 188% more floor space and double annual output to around 612 units by August 2026, along with its newly consolidated Tenaga Kenari operations in Sarawak, the group should be better able to absorb order growth, the research house said.
Meanwhile, the group’s RM410mil rolling tender book is larger than the reported order book and more concentrated in the group’s highest-margin end-market, with even partial conversion meaningfully extending revenue visibility beyond FY27, it added.
As the only Malaysian manufacturer with full low voltage and medium voltage or LV+MV Siemens licensing, Powerwell is well-positioned to capture the demand from the country’s DC investment supercycle, with DC capacity predicted to nearly triple by 2030, implying a RM128bil to RM162bil addressable mechanical and electrical market, Apex Securities said.
It added that the group’s Tenaga Kenari acquisition offered an initial 4.5% and 3.8% uplift to group core net profit in FY27 and FY28, respectively, while providing Powerwell its first Sabah and Sarawak manufacturing presence and an established Sarawak Energy Bhd relationship.
Apex Securities initiated coverage on the stock with a “buy” call and a target price of RM1.10, derived from a 16.2 times price-to-earnings multiple to its FY27 to FY28 blended core earnings per share estimate of 6.8 sen.
