Ranhill poised to benefit from Johor data centre and industrial growth

BIMB Research said the company's management expects Ranhill SAJ to qualify for the 2025 non-revenue water grant cycle.

PETALING JAYA: Ranhill Utilities Bhd is well positioned to benefit from Johor’s expanding data centre (DC) and industrial sectors, with rising water demand and higher tariffs expected to provide structural support to its earnings.

Hong Leong Investment Bank (HLIB) Research said the August 2025 water tariff restructuring, which introduced a dedicated RM5.33 per cubic m tariff for DCs, has materially strengthened the earnings and cash flow of Ranhill’s 80%-owned subsidiary Ranhill SAJ Sdn Bhd.