PETALING JAYA: Pekat Group Bhd
’s prospects will be driven by sustainable growth across all its operating segments, riding on the growth in large-scale and rooftop solar, and earthing and lightning protection (ELP)-related jobs for data centres (DCs), according to analysts.
Further growth is also envisaged by its subsidiary EPE Switchgear (M) Sdn Bhd, which specialises in the medium voltage category (11 kilovolts and 33 kilovolts), where it competes mainly with four other companies in Tenaga Nasional Bhd’s supply chain.
On Monday, Pekat announced that it bagged three ELP contracts worth about RM57mil for DCs in Johor. In a report, Phillip Capital Research said Pekat’s year-to-date or y-t-d contract wins (including the latest three contracts) have increased to RM290mil. This represents 48% of the research house’s 2026 order book replenishment assumption of RM600mil.
Its y-t-d ELP wins have also risen to RM76.9mil, or 51%, of its RM150mil ELP replenishment target.
Furthermore, the group’s outstanding order book has expanded to RM936mil, equivalent to 1.5 times 2025 revenue coverage, comprising power distribution (37%), solar (33%), ELP (29%) and trading (1%).
Phillip Capital Research noted: “Assuming a 13% to 14% profit after tax margin, we estimate the three contracts will contribute about RM7mil to RM8mil in profit after tax over 2026 to 2027.”
Based on an estimated ELP contract value of RM200,000 to RM300,000 per megawatt, Malaysia’s seven gigawatt DC pipeline implies a potential addressable market of RM1.4bil to RM2.1bil.
Against this, Pekat’s current ELP order book of around RM270mil represents only about 13% to 19% of the opportunity, suggesting ample room for further contract wins, said Phillip Capital Research.
The research house maintained a “buy” call on the stock and raised its target price (TP) higher at RM2.37 per share.
On Pekat’s outlook, Apex Research in a note to clients said the group’s order momentum now sits with ELP rather than solar.
The research house noted that both segments are geared towards DC and grid capital expenditure, which Apex Research expects to hold through financial year 2027 (FY27) as DC demand has continued to remain strong in Malaysia.
With this latest contract award by Pekat, Apex Research said: “The FY26 y-t-d ELP wins have exceeded our previous full-year replenishment assumption of RM75mil, with nearly four months of the financial year still to run.
“We therefore raise the FY26 assumption to RM80mil, core net profit upward by 0.8%, 1.3% and 1.1% to RM51.8mil, RM64mil and RM71.5mil for FY26, FY27 and FY28, respectively.”
The research house has maintained a “buy” call on Pekat with an unchanged TP of RM1.88.
MBSB Research has also kept a “buy” call with a TP of RM2.46.
“We believe the premium against its peers is justified, given that Pekat differentiates itself from other solar companies through its involvement in manufacturing power distribution equipment and ELP, which is benefiting from the rise in DC projects,” it noted.
MBSB Research expects Pekat’s proposed transfer to the Main Market of Bursa Malaysia to enhance the group’s credibility, prestige and reputation, reflecting its growth since listing in June 2021.
