Pekat Group Berhad has clinched a significant RM21.8 million contract for earthing and lightning protection systems at a hyperscale data centre project led by Gamuda Engineering. This project, located at the Elmina Business Park, is expected to be completed by September 2025. Pekat’s order book now stands robust at RM207 million, predominantly from rooftop solar projects, and is anticipated to expand to RM320 million by the fourth quarter of 2024 with additional Corporate Green Power Programme (CGPP) EPCC jobs.
Analysts maintain a BUY call for Pekat with an unchanged target price of RM1.32 per share. This recommendation is underpinned by the company’s consistent performance and favourable industry conditions, including supportive policies like the CGPP and the National Energy Transition Roadmap. Pekat’s latest win reflects its strategic focus on fast-paced projects, aligning with the increasing demand for industrial data centres.
With the company expected to release its second-quarter results on August 21, 2024, forecasts indicate performance in line with the FY24 expectations of RM8 million to RM9 million for the first half of the fiscal year, driven by its commercial, industrial, and residential rooftop solar segments. Furthermore, the company’s positive outlook is bolstered by its proposed acquisition of 60% of Apex Power, enhancing its business scope into power distribution equipment and potentially opening new international markets.
Pekat’s share price is currently at RM0.965, with an anticipated return of +36.8%, based on the analysts’ projections. The company’s strategic initiatives and robust project pipeline contribute to its optimistic future performance.
