Keem Corp Bhd is positioned as an underappreciated beneficiary of Malaysia’s accelerating power infrastructure expansion, supported by rising demand from data centres, hyperscalers and renewable energy projects, according to a report by Kenanga Research.
Kenanga initiated coverage on KEEMING with an OUTPERFORM rating and a target price (TP) of RM1.80, citing the company’s exposure to high-growth sectors including data centre mechanical and electrical (M&E) works, solar interconnection facilities and potential recurring utility projects.
The research house said KEEMING is well positioned in the current infrastructure cycle, particularly as International Organisation for Standardisation (ISO) requirements and urgent hyperscaler demand favour contractors with proven execution capabilities and compliance credentials.
Kenanga expects KEEMING’s earnings to expand, forecasting a two-year core earnings compound annual growth rate (CAGR) of 19% between FY2027 and FY2028, backed by its M&E track record and expanding project pipeline.
KEEMING currently has an order book of approximately RM172 million, with around 70% expected to be recognised in FY2027.
The company also has a tender book worth RM1.7 billion, which Kenanga estimates could translate into potential replenishment of between RM250 million and RM340 million, based on a historical win rate of 15% to 20%.
This could potentially lift KEEMING’s total order book to around RM500 million, equivalent to about three times its FY2026 revenue.
Kenanga noted that execution risks remain manageable, supported by KEEMING’s RM47 million net cash position and a team of 15 project managers, which it estimates allows the company to tender for projects worth up to RM900 million.
A key growth driver for KEEMING is the expansion of Malaysia’s data centre sector.
The company’s RM1.7 billion tender book includes approximately RM500 million in data centre-related tenders submitted in June, highlighting its increasing exposure to the segment.
KEEMING typically undertakes post-core-and-shell works, which are commonly outsourced by main contractors. Kenanga said the company benefits from its ISO credentials, which create barriers for smaller contractors seeking entry into the sector.
Currently, data centre-related projects account for around 37% of KEEMING’s order book.
The company is also exploring opportunities in data centre substations, a segment where contract values could be three to four times larger than its existing scope of work, potentially creating further upside.
Kenanga highlighted that KEEMING’s core industrial M&E business, which contributes around 70% of FY2026 revenue, is supported by the broader growth of Malaysia’s M&E services market.
The sector is projected to expand from RM11 billion currently to RM17 billion by 2030, representing an estimated CAGR of 11%.
Growth is expected to be driven by industrial developments including the Johor-Singapore Special Economic Zone (JSSEZ), data centre investments and the National Energy Transition Roadmap (NETR).
Rising electrification trends and increasing power demand from industrial hubs such as Batu Kawan and Kulim Hi-Tech Park are also expected to support demand for higher-value M&E works.
Beyond data centres, KEEMING is expected to benefit from Malaysia’s renewable energy push through its relationship with Solarvest Holdings Bhd (SLVEST).
SLVEST holds a 24% stake in KEEMING, and the partnership has helped the group secure interconnection facility contracts worth RM56 million to date.
Based on SLVEST’s RM2.5 billion order book and assuming typical solar project interconnection costs of RM3 million per megawatt (MW), Kenanga estimates potential interconnection opportunities could reach around RM833 million.
The research house believes KEEMING is strategically positioned to capture a meaningful share of this pipeline.
KEEMING is also working towards becoming a Tier-1 contractor for Tenaga Nasional Bhd (TNB) through joint ventures with existing panel contractors.
Under the proposed structure, KEEMING would hold a 30% share in these joint ventures.
The company has submitted five high-voltage (HV) tenders, each averaging between RM40 million and RM50 million, with outcomes expected within six months.
Successful wins could help shift KEEMING’s earnings profile from project-based revenue towards more stable recurring utility-grade contracts.
Kenanga said this could provide additional upside to its forecasts and strengthen the company’s long-term earnings visibility.
The research house maintained its positive view on KEEMING, valuing the company at 18 times FY2028 forecast earnings per share to arrive at its RM1.80 target price.
