PETALING JAYA: Malakoff Corp Bhd
is entering a new phase of growth as it expands beyond conventional power generation into renewable energy (RE) projects that are expected to strengthen earnings over the coming years.
With several major developments advancing simultaneously, the utility group is positioning itself for a broader and more diversified generation portfolio.
TA Research remains optimistic on Malakoff following a recent site visit to the group’s small hydropower project in Dabong, Kelantan, maintaining its “buy” recommendation with an unchanged target price of RM1.26.
It said the market has yet to fully appreciate the value of the company’s RE pipeline.
“We came away with a more constructive outlook on project delivery, as well as potential future contribution to group earnings.
“Importantly, we think current share price levels have yet to fully reflect Malakoff’s upcoming 676-megawatt (MW) RE asset pipeline, which will progressively come on-stream over the next three years,” it said, adding that RE assets account for close to 30% of its valuation.
Meanwhile, one analyst from a bank-backed research house told StarBiz that he sees Malakoff as steadily reshaping its business with a clearer emphasis on RE, while retaining the earnings support of its conventional assets.
That balanced approach should strengthen the company’s long-term growth profile, he said.
“Execution will remain the key catalyst for Malakoff over the next few years.
“As more RE projects are completed and commissioned, investors are likely to pay greater attention to the group’s evolving earnings mix,” he added.
Malakoff acquired a 70% stake in RP Hydro (Kelantan) Sdn Bhd’s small hydropower project in March 2023 as part of its strategic transformation, identifying small hydropower as a key growth area within its RE portfolio.
The 84MW project, developed along Sungai Galas using a run-of-river cascade system, comprises the Serasa, Kemubu and Kuala Geris sites and is expected to generate up to 484 gigawatt-hours of electricity annually under a 21-year RE power purchase agreement.
Electricity generated at Serasa and Kuala Geris will be transmitted to the Kemubu collector station before being injected into the National Grid.
The project was originally scheduled for commissioning in August 2026, but encountered delays at the Kuala Geris site because of access constraints, regulatory approvals and adverse weather.
TA Research noted that construction momentum has improved significantly after a new access road was completed in August 2025, while an on-site concrete batching plant and hydraulic system formwork shortened concrete casting cycles from seven days to three days.
As of late July 2026, barrage construction at Kuala Geris is progressing well, while cofferdam works at Serasa and Kemubu have been completed, allowing powerhouse construction to begin.
Turbines are expected to arrive in stages during September and October for installation.
TA Research highlighted that the fixed-price nature of the engineering, procurement, construction and commissioning contract limits Malakoff’s financial exposure to construction delays.
It said the revised completion targets of February 2027 for Kemubu and Serasa, and April 2027 for Kuala Geris, remain within the Sustainable Energy Development Authority’s feed-in tariff deadline of June 2027.
It noted that each site has its own RE power purchase agreement, enabling completed facilities to begin supplying electricity to the grid independently.
