CIMB Investment Bank Bhd (CIMB Securities) said Swift Energy Technology Bhd (SET) has room to re-rate, with an indicative fair value of RM0.32 to RM0.39 against its RM0.25 share price, although the research house stressed that it has no formal rating on the company.
SET’s outstanding orderbook stood at RM173 million as at July 28, with explosion-protected solar and related systems alongside power distribution accounting for an estimated 75% to 80% of the total. CIMB said the RM232 million tender pipeline further supports earnings visibility.
The electrical equipment manufacturer is also looking to data centres as a second growth engine beyond its established oil and gas and food processing customer base. CIMB highlighted a RM9 million to RM11 million order for 199 neutral earthing resistors used in 11 kV backup power systems, while a further 680 units could represent an addressable opportunity through its Cressall partnership between 2026 and 2029.
CIMB said SET’s ability to expand from standalone components into complete 11 kV electrical packages, including neutral earthing resistors, high-voltage switchgears and related engineering, procurement and construction works, could increase its share of project value.
The research house noted SET trades at 10.7 times CY27F earnings, a 37.4% discount to peers’ weighted average of 17.2 times, despite its niche certification-led capabilities and net cash position.
CIMB said timely orderbook conversion and new contract wins could drive a re-rating, while project delays and execution lapses remain key risks.
As of 11.14 am, the stock price rose 4.08% to RM0.255.
