KUALA LUMPUR (Sept 22): Powerwell Holdings Bhd (KL:PWRWELL) tested new record high on Tuesday as investors and analysts cheered the electricity distribution equipment maker’s largest ever contract.
The latest orders, worth RM190.4 million combined from a single customer, prompted two of the three research houses covering Powerwell to upgrade their ratings. M+ Global said the contract showed the company’s ability to secure repeat business within the data centre segment.
“We view the latest contract win positively, as it further strengthens Powerwell’s positioning in data centre-related power distribution equipment,” the research house said.
M+ Global lifted its recommendation to “buy” and target price by 21 sen to RM1.41. Affin Investment Bank also upgraded Powerwell to “buy” with target price of RM1.35.
Powerwell rose as much as six sen or 5% to RM1.22 before closing at RM1.16, unchanged from the previous session, as over five million shares exchanged hands. At the last price, the company is valued at RM673 million.
Shares of Powerwell have gained more than 80% so far this year, lifting its market capitalisation to RM679 million amid major grid upgrades to cope with a wave of energy-hungry data centres mushrooming in Malaysia. Powerwell now has unbilled jobs worth about RM459 million.
Apex Securities, meanwhile, is keeping its “hold” call on Powerwell, noting that bulk of the newly secured orders will contribute to income in the financial year ending March 2028 and are already factored into the research house’s existing assumptions.
Still, the medium-term outlook on Powerwell remains positive, the house said. “The group is well positioned to benefit from several multi-year structural growth drivers, including Malaysia’s data centre build-out,” Apex Securities added.