KUALA LUMPUR (Dec 23): Electrical products manufacturer Powerwell Holdings Bhd (KL:PWRWELL) has secured a RM27 million contract to supply low-voltage switchboards for a data centre project in Malaysia.

The contract was awarded to its wholly-owned subsidiary Kejuruteraan Powerwell Sdn Bhd by "a leading international contractor," the company said in a filing with Bursa Malaysia on Monday, without disclosing the identity of the contractor.

Powerwell said the contract is expected to be completed by the first quarter of 2025 and anticipates the deal will positively impact its consolidated earnings and net assets for the financial year ending March 31, 2025 (FY2025).

Listed on the ACE Market in 2020, Powerwell specialises in the design, manufacturing and trading of electrical distribution products, including low-voltage switchboards and medium-voltage switchgears.

In September, Powerwell clinched a RM13.25 million contract to supply low-voltage switchboards for data centre projects in Indonesia. Earlier in August, the company bagged a RM14.75 million contract for a similar project in Malaysia, also from "a leading international contractor."

In May, Powerwell announced two purchase orders worth a combined RM57.61 million, both related to data centre projects.

For FY2024, the company recorded a net profit of RM19.71 million, marking a 189% increase from RM6.81 million in the previous year. This was driven by a higher gross profit margin of 29.7%, compared with 15.5% in FY2023, underpinned by the successful completion of high-value projects, including those in the semiconductor, solar power and data centre sectors.

For the first quarter of FY2025, Powerwell reported a net profit of RM1.2 million on revenue of RM16.58 million.

Shares in Powerwell closed half a sen or 1.08% higher at 47 sen on Monday, giving the company a market capitalisation of RM269.96 million. The stock, which has been climbing over the past week, has doubled in value since the beginning of the year.