Pekat’s solar, DC wins lift order book to RM936mil

By the Editorial Team · Wednesday, September 9, 2026

Pekat Group Bhd has secured three new earthing and lightning protection contracts worth RM57 million for data centre projects, expanding its total order book to RM936 million. This strong order momentum, supported by growth in solar and power distribution segments, positions the company for significant profit potential through 2027 and underpins analyst buy ratings with target prices up to RM2.46 per share.

Pekat Group Bhd’s order book has expanded to RM936 million, supported by growth across its solar, power distribution, and earthing and lightning protection (ELP) segments, according to recent analyst reports. The company’s latest contract wins highlight rising demand driven by data centre (DC) projects and large-scale solar developments in Malaysia.

On Monday, Pekat announced it secured three ELP contracts worth approximately RM57 million for DC facilities located in Johor. These awards contribute to the company’s year-to-date (YTD) contract wins, which have reached RM290 million, representing nearly half of projected order replenishment for 2026, as per Phillip Capital Research. The YTD ELP segment wins stand at RM76.9 million, exceeding 50% of the RM150 million replenishment target for this category.

Pekat’s outstanding order book now covers about 1.5 times its 2025 revenue, with 37% coming from power distribution, 33% from solar, 29% from ELP, and the remaining 1% from trading activities. Phillip Capital Research estimates that the new contracts could generate profit after tax of RM7 million to RM8 million over the 2026-2027 period, assuming an after-tax margin between 13% and 14%.

The potential market for ELP services linked to Malaysia’s estimated seven-gigawatt DC pipeline is valued between RM1.4 billion and RM2.1 billion, based on an ELP contract price range of RM200,000 to RM300,000 per megawatt. Pekat’s current ELP order book of around RM270 million accounts for roughly 13% to 19% of that opportunity, indicating significant room for further expansion, the research house noted.

Apex Research provided an outlook emphasizing that Pekat’s current order momentum is stronger in ELP compared to solar, driven by sustained capital expenditure in data centres and grid infrastructure. The firm raised its forecast for 2026 ELP wins to RM80 million, up from RM75 million, and adjusted its core net profit estimates for the fiscal years 2026 through 2028 by modest margins. Apex Research reaffirmed its “buy” recommendation on the stock, maintaining a target price of RM1.88 per share.

MBSB Research also maintained a “buy” rating, citing Pekat’s unique positioning due to its involvement in power distribution equipment manufacturing alongside solar and ELP businesses. The firm noted that this diversification supports earnings growth tied to DC developments. MBSB highlighted that Pekat’s upcoming transfer to the Main Market of Bursa Malaysia is expected to enhance the company’s corporate stature, reflecting its progress since its listing in June 2021. The research house set a target price of RM2.46 per share.

Pekat’s subsidiary, EPE Switchgear (M) Sdn Bhd, continues to compete within Tenaga Nasional Bhd’s supply chain for medium voltage products (11 kV and 33 kV), contributing to the group’s broader market presence. Analysts anticipate that Pekat’s focus on multiple growth segments will support sustainable business expansion in the near term.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.