KUALA LUMPUR (Aug 28): OCK Group Bhd (KL:OCK) hit a three-month high after a stronger full-year earnings result beat consensus estimates.

The counter reached a high of 45 sen before giving up some of its gains to close 1.5 sen, or 3.57% higher, to 43.5 sen. Some 9.74 million shares were traded. At its last price, its market value was RM472.4 million.

Phillip Capital in a note on Friday said OCK’s core net profit doubled to RM48 million for the financial year ended June 30, 2026 (FY2026), beating consensus and full-year forecasts by 26-29%.

"The earnings beat was mainly driven by lower-than-expected depreciation charges," the house said, raising its FY2027-FY2029 earnings per share forecasts by 24-25%.

Phillip Capital kept its 'buy' call on OCK with a higher sum-of-parts derived target price (TP) of 75 sen (from 68 sen). 

"We continue to like OCK for its rising 5G-driven earnings, strong visibility from 60-65% recurring income, and its position as an MCMC beneficiary," it added.

Separately, RHB Research said OCK's 4QFY2026 results were broadly in line, noting a bumper RM9.5 million investment/dividend income booked from its solar asset investment during the quarter. 

"We see stronger earnings execution going forward, on the back of its growing digital infrastructure tender book. Our TP and forecasts are unchanged pending the results call," said the research firm, keeping its 'buy' call and TP of 74 sen.

RHB noted that OCK is pivoting into digital infrastructure and smart projects. 

"The group is shifting its focus away from the legacy site contracting business where growth appears to be levelling off."

OCK has also made good in-roads into smart city projects, which is supportive of the digital infrastructure tender book of about RM500 million, said RHB.

"We expect some of these projects to translate into actual wins going forward, which could materially lift margins and earnings in the medium term."