KUALA LUMPUR (Sept 27): Powerwell Holdings Bhd (KL:PWRWELL) has secured a RM13.25 million contract to supply low-voltage switchboards for data centre projects in Indonesia.
Its wholly owned subsidiary, Powerwell International Sdn Bhd, received the letter of award from PT Duta Listrik Graha Prima, with completion expected by May 2025.
The contract is expected to positively impact Powerwell’s consolidated earnings and net assets for the financial year ending March 31, 2025 (FY2025) onwards, the company said in a filing to Bursa Malaysia on Friday.
“We are excited to continue our expansion into the Indonesian market with this significant contract win. The Indonesian government is investing heavily in digital infrastructure, including the development of four national Tier 4 data centres aimed at supporting the country’s digital economy and services,” said Powerwell executive director for sales and marketing Soh Wei Wei.
“Powerwell is well positioned to support this growth with our reliable and innovative electrical solutions. This contract reinforces our capability to deliver in high-growth markets outside Malaysia and demonstrates our commitment to becoming a key player in the Southeast Asian data centre landscape. We will continue to lobby for more opportunities in this thriving market as we look to strengthen our presence and contribute to the region’s digital transformation,” Soh added.
Listed on the ACE Market in 2020, Powerwell specialises in the design, manufacturing and trading of electricity distribution products, including low-voltage switchboards and medium-voltage switchgears.
In August, the company secured a RM14.75 million contract to supply low-voltage switchboards for a data centre in Malaysia from "a leading international contractor". Earlier, in May, it secured two purchase orders totalling RM57.61 million, also related to data centres.
For FY2024, Powerwell posted a record-high net profit of RM19.71 million, up 189% from RM6.81 million in the previous year, driven by a higher gross profit margin of 29.7%, compared to 15.5% earlier. This growth was largely attributed to increased profitability from completed high-value projects, including a semiconductor plant, a solar power plant, and data centre projects.
For the first quarter ended June 30, 2024 (1QFY2025), the company reported a net profit of RM1.2 million on a revenue of RM16.58 million.
At Friday’s noon break, Powerwell’s share price was traded unchanged at 40.5 sen, giving it a market capitalisation of RM235.1 million.