PETALING JAYA: Kee Ming Group Bhd appears to be in a stronger position to secure additional work packages and compete for projects from other hyperscale data centre (DC) operators following its second contract win from the same development in Puncak Alam, Selangor, according to Kenanga Research.
The research house said Kee Ming’s latest RM44mil electrical subcontract, more than double the RM21mil secured in June 2026, brings cumulative contract wins from the development to approximately RM66mil.
“With about RM66mil secured from the same Puncak Alam development, we believe Kee Ming is in a stronger position to secure subsequent work packages and compete for projects from other hyperscalers,” it said.
Kenanga Research said the repeat award suggests growing confidence in Kee Ming’s execution capabilities, potentially opening opportunities for larger contracts.
“We believe this is more than just another contract win, as the larger award suggests Kee Ming is gaining the main contractor’s confidence to undertake a greater scope of electrical works,” it said.
The latest subcontract covers general electrical works and main building electrical works, with completion targeted for July 30, 2027.
Kenanga Research estimated the nine-month contract could generate approximately RM9mil in gross profit, assuming a 20% margin, equivalent to 14% of its financial year 2027 (FY27) gross profit forecast.
Following the award, Kee Ming’s outstanding order book is estimated at RM290.2mil, with high-voltage and DC projects accounting for 60%.
“We expect DC contract awards to remain strong in the near term, backed by another wave of hyperscale DC investments in Malaysia,” it said.
Kenanga Research maintained an “outperform” recommendation and raised the target price to RM3.23 from RM2.84, based on an 18 times forecast FY28 earnings per share following its earnings upgrades.
