PETALING JAYA: Kinergy Advancement Bhd
is strengthening its foothold in the data centre (DC) sector, after securing its first standalone electrical infrastructure contract worth RM47.5mil from Gamuda Bhd, opening up opportunities for further project wins.
Gamuda, which is developing a DC campus in Bandar Springhill, Port Dickson, awarded the subcontract to Kinergy.
Work is expected to begin by year-end and set to be completed by the first quarter of financial year 2028 (1Q28).
Under the agreement, Kinergy will undertake the engineering, supply, installation, testing and commissioning of the DC’s core-and-shell electrical infrastructure.
“This job scope encompasses high-tension and low-voltage distribution infrastructure, substations, switchgear as well as power distribution works.
“This is the first standalone DC electrical job for the group, as it had completed a cable installation job for EdgeConneX’s DC project via a joint venture in 2024,” RHB Research said.
Apex Research viewed the contract win positively, estimating that it could generate RM3.8mil in cumulative net profit through 1Q28, assuming an 8% net profit margin.
“This represents about 9.3% of our financial year 2026 (FY26) forecast net profit of RM41mil, although the actual contribution will depend on project margins and revenue recognition timing,” the research house said.
The award lifts Kinergy’s outstanding order book to RM1.4bil across 25 projects, from RM1.35bil across 24 projects, providing close to three years of revenue visibility based on its FY25 revenue of RM478mil.
Apex Research also said the contract would strengthen the group’s credentials in the DC sector, providing a reference for larger electrical infrastructure packages – especially repeat work with Gamuda.
The research house noted the RM95.8bil in approved DC and cloud-computing investments reported by the Malaysian Investment Development Authority for the first half of financial year 2026 (1H26) could generate further demand for specialised electrical and power infrastructure, as projects progress towards construction.
However, the timing of these projects and Kinergy’s ability to convert the opportunities into contracts remain uncertain.
Separately, RHB Research said it expects Kinergy to receive the letter of notification for its proposed 1.5-gigawatt Perlis power plant by year-end, followed by the signing of a power purchase agreement in 1Q27.
Kinergy has appointed a main contractor to begin groundworks at the site and expects to take delivery of the first turbine in 1H27.
The first phase, with a capacity of 750 megawatts, is targeted for commissioning by December 2028.
“Upon full commissioning, we estimate the plant will contribute RM78mil to Kinergy based on its 20% stake.
“We also expect it to recognise RM400mil in construction revenue from Phase 1 of the project,” RHB Research said.
Apex Research maintained a “buy” rating and target price of 67 sen for Kinergy, based on 22.7 times its FY28 forecast earnings per share of 2.94 sen.
The stock also has a three-star environmental, social and governance rating.
