PETALING JAYA: Powerwell Holdings Bhd
’s strategic collaboration agreement with Socomec Innovative Solution (Malaysia) Sdn Bhd to pursue the data centre and hyperscale segment has boosted its outlook.
The collaboration with the France-based Socomec was via Powerwell’s wholly-owned subsidiary, Powerwell International Sdn Bhd.
Socomec is a French electrical equipment group specialising in low-voltage energy performance which generates close to €1bil (RM4.6bil) in annual turnover, serving data centres and other critical environments.
Under the tie-up, Powerwell will serve as system integrator for power train units, factory-integrated modules pairing its own power distribution equipment with Socomec’s uninterruptible power supply systems, combining both parties’ expertise into a single end-to-end power solution for data centre customers.
In a report, Apex Securities Research said it views the tie-up positively as it strengthens Powerwell’s system-integrator positioning in data centres.
“Powerwell’s medium-term outlook stays positive – the tie-up extends its system-integrator ambitions in the data centre space, building on the pilot “power skid” initiative while giving them an international name to pair with,” the research house said.
Despite no firm scope, timeline or orders as of yet, Apex Research said the tie-up is not just a near-term earnings catalyst.
With that, Apex Research said it will not change its earnings forecasts for Powerwell but maintain a “hold” call on the stock with a target price of RM1.10 based on an unchanged 16.2 times price-to earnings ratio multiple applied to a blended financial year 2027 (FY27) to FY28 core earnings per share estimate of 6.8 sen.
Meanwhile, the research house said risks include a slowdown in project awards, lower margins due to jobs outsourcing, higher expansion costs, electricity supply constraints or regulatory changes affecting data centre developments
It should be noted that this is not Powerwell’s first venture into the data centresegment – the company secured two data centres purchase orders in Johor from a repeat customer, worth a combined RM190.4mil.
