Pekat Group Berhad - A Solar and ELP Expert
Mon, 12-Aug-2024 08:02 pm
by Tan Sue Wen • Apex Research

Counter

PEKAT (0233)

Target Price (RM)

1.14

Recommendation

Buy

  • Pekat is poised to ride onto the renewable energy growth and is well-equipped to capitalise onto the mushrooming data centers trend.
  • We expect Pekat’s earnings to hit record highs, with core net profit reaching RM20.9m and RM31.9m in FY24F and FY25F respectively, backed by potentially strong order book replenishment from RE initiatives, ELP solutions, and factoring in contribution from acquisition of switchgear business.
  • We initiate coverage on Pekat with a BUY recommendation and TP of RM1.14 based on SOP valuation.
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186344 4.224837
EUR 4.692802 4.707788
CNY 0.594564 0.595974
HKD 0.537155 0.542118
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