MBSB Investment Bank Bhd (MBSB Research) maintained its BUY call on Pekat Group Bhd with an unchanged target price of RM2.03, citing sustainable growth across its solar, earthing and lightning protection (ELP) and power distribution equipment businesses. The research house said the group is well positioned to benefit from large-scale and rooftop solar projects, data centre-related ELP jobs and growth at EPE Switchgear (M) Sdn Bhd.
Pekat posted core net profit of RM13.8 million for 2QFY26, up 25.3% year-on-year, while revenue rose 38.1% to RM175.4 million. For 1HFY26, revenue increased 23.8% to RM343.3 million and core earnings rose 14.5% to RM26.3 million, putting the results broadly in line with MBSB Research’s expectations.
Solar PV remained the largest revenue contributor at RM84 million, rising 34.2% year-on-year on stronger progress in large-scale solar EPCC projects. EPE Switchgear revenue grew 34.7% to RM46.9 million while ELP revenue surged 67.2% to RM24.9 million on improved project execution.
MBSB Research said Pekat’s consolidated order book is estimated at more than RM800 million, led by EPE Switchgear, with further replenishment expected from LSS5+, LSS6 and data centre projects.
The research house also highlighted two ELP contracts worth RM46.9 million secured in July for data centres in Port Dickson and Johor. It expects Pekat’s proposed transfer from the ACE Market to the Main Market to be completed by 4QCY26.
The stock price rose 6.21% to RM1.88 as of 11.12 am.
