Pekat Group Bhd remains a BUY call with MBSB Research raising its target price to RM2.46 from RM2.03, citing the commercial operation of its 29.99MW Corporate Green Power Programme solar farm in Perak and sustainable growth across its solar, earthing and lightning protection and switchgear businesses.
The Tronoh solar PV plant achieved its commercial operation date after receiving notification from the Energy Commission. MBSB Research said the facility is expected to generate around 77GWh of renewable energy annually over its 21-year concession, providing Pekat with meaningful recurring income of around RM4 million to RM5 million a year.
The plant has five corporate offtakers secured under agreements signed in November 2023, including CTRM Aero Composites, HICOM Automotive Manufacturers, Motosikal dan Enjin Nasional and PHN Industry.
MBSB Research raised its FY26 to FY28 earnings estimates by 3.7%, 9.9% and 9.0% respectively to reflect the solar farm contribution. It said the higher target price is based on Pekat’s revised FY27 earnings per share of 8.8 sen and a 28 times forward price-to-earnings ratio.
The research house also highlighted Pekat’s RM797 million order book as at June, led by EPE Switchgear with RM308 million, while earthing and lightning protection orders reached RM298 million. Two data centre projects secured in July were worth RM46.9 million in total.
MBSB Research expects further replenishment from LSS5+, LSS6 and data centre projects, while Pekat’s proposed transfer to the Main Market is targeted for completion in 4QCY26.
As of 4.12 pm, the stock price fell 2.65% to RM1.84.
