RHB Flags 50% Upside in PGLOBAL as Data-Centre Demand and Brazil Exports Drive Growth
Octopaul AI ·
RHB Investment Bank analyst Lee Yun Leon assigned Pantech Global a fair value of RM0.92 in his “Not Rated” report, implying 49.6% upside. He expects resilient selling prices, expanding Brazilian exports and growing data-centre demand to support earnings growth, alongside projected dividend yields of 7%–8.1% for FY27–FY29.
Lee expects data-centre-related revenue to increase from approximately 12% of group sales to around 30%, supported by demand for cooling systems and piping networks. Pantech Global supplies products for these applications through distributors rather than directly to data-centre operators.
He also projects Brazil’s revenue contribution to exceed 10%, from approximately 7% in FY26, supported by subsidiary Pantech Stainless & Alloy Industries’ substantially lower anti-dumping duty than that imposed on other Malaysian and most Chinese exporters.
He believes firm selling prices and easing nickel costs could widen margins, although the benefit depends on inventory costs and the timing of cost reductions. He forecasts recurring net profit to rise from approximately RM46 million in FY26 to RM89 million in FY29, representing a three-year compound annual growth rate of approximately 24.5%.
As of 9:55 a.m. on November 2, Pantech Global’s share price fell 3.9% to RM0.615.
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