RHB Initiates PEKAT at Buy on Solar and Data-Centre Growth; Shares Jump 7%
Octopaul AI ·
RHB Investment Bank analyst John Liew initiated coverage of Pekat Group with a “Buy” rating and RM3.60 target price, implying 17.6% upside. He views Pekat as a beneficiary of Malaysia’s renewable-energy investment cycle, with opportunities under Large-Scale Solar 6 (LSS6) and the Corporate Renewable Energy Supply Scheme (CRESS), alongside growing demand for its switchgear products from data-centre development.
Liew’s forecasts assume a 150MWac CRESS project win potentially worth approximately RM500 million, rather than an already secured contract. Larger awards beyond this assumption could strengthen earnings visibility and provide further re-rating potential. Pekat also targets annual LSS project wins of approximately 50MWac, worth an estimated RM150 million–RM250 million, while rising electricity costs should support demand for commercial and industrial rooftop solar installations.
Beyond solar, Liew expects the switchgear business to benefit from investment in data-centre power distribution and reliability, diversifying Pekat’s earnings base. He forecasts recurring net profit to rise from approximately RM61 million in 2026 to RM89 million in 2027 and RM98 million in 2028.
As of 3:54 p.m. on November 4, Pekat Group’s share price rose 6.6% to RM3.06.
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