PEKAT’s FY25 CNP of RM43.4m (+107% yoy) was within expectations, achieving 98% of our and consensus full-year estimates. 4QFY25 CNP reached RM10.9m (+5.6% qoq). This performance was anchored by robust CGPP execution and a 148.5% yoy surge in Trading sales (to RM137.0m) following the successful integration of PDE.
No Dividends Declared in Q4, Final DPS of 1.0 sen (0.6% yield) for the year.
As results were largely in line, we maintain our FY26–27 earnings forecasts and introduce our FY28 forecast of RM70.6m.
Looking ahead, earnings visibility remains strong via LSS5 prospects and the ATAP framework, while the ELP segment gains from the ongoing data center boom.
We reiterate BUY with an unchanged TP of RM1.59, based on SOP valuation.
Exceeded expectations. PEKAT reported a 4QFY25 core net profit (CNP) of RM10.9m (+5.6% qoq, +13.1% yoy), bringing full-year FY25 CNP to RM43.4m (+107.0% yoy). The results were in line, achieving 98% of both our and consensus full-year estimates. This robust performance was anchored by the successful execution of the Corporate Green Power Programme (CGPP) and a 148.5% yoy surge in Trading Segment Sales (to RM137.0m), which collectively propelled revenue to a record RM609.9m (+112.5% yoy).
Dividend Payout. While no dividends were declared during the final quarter, the total DPS for the year remains at 1.0 sen. This inaugural payout reflects a dividend yield of 0.6% based on the current share price, signaling PEKAT's transition into a more balanced capital allocation.
YTD. Full-year revenue surged 112.5% to RM609.9m, propelling core net profit (CNP) by 107.0% yoy to RM43.4m. This performance was anchored by accelerated billings from large-scale CGPP contracts and the full-year consolidation of the newly acquired PDE Division. Growth was further bolstered by higher trading volumes and robust demand for high-margin Earthing and Lightning Protection (ELP) systems within the industrial and data centre sectors. However, the bottom line was partially tempered by a rise in administrative expenses to RM73.9m (FY24: RM47.9m) due to workforce expansion and the inclusion of the PDE division, alongside higher finance costs of RM5.8m (FY24: RM1.5m) following increased term loans to fund the acquisition and solar plant developments.
YoY: Revenue in 4QFY25 surged 102.5% to RM190.9m, fueled by accelerated billings from major solar EPCC projects. Despite the top-line momentum, core net profit (CNP) growth was relatively modest at 13.1% yoy, as profitability was compressed by a shift in project mix toward lower-margin utility-scale solar contracts and a significant spike in administrative expenses almost doubling to 21.0m from 11.2m in FY24. This surge in overheads was primarily attributed to an expanded workforce and higher technical staff costs required to support the Group's larger project pipeline and the integration of the PDE division as mentioned earlier.
QoQ. Revenue rose 34.7% sequentially to RM190.9m, reflecting peak construction activity for ongoing Corporate Green Power Programme (CGPP) projects. Core net profit (CNP) grew 5.6% qoq to RM10.9m, primarily supported by higher order fulfillment and improved project execution across the PDE and ELP divisions. However, the bottom line was partially weighed down by a 68.8% surge in net finance costs to RM1.5m, following the recognition of interest expenses related to acquisition-term loans and project financing in the final quarter.
Outlook. We expect PEKAT to enter 2026 with high earnings visibility, anchored by a robust outstanding order book and a diversified project pipeline. The EPCC segment remains a frontrunner for the upcoming LSS5 awards, while management is aggressively pursuing further Corporate Green Power Programme (CGPP) and Any-to-Any Corporate PPA (ATAP) contracts to sustain its solar momentum. Under the ATAP framework which precedes the NEM, PEKAT is well-positioned to facilitate third-party access (TPA) for corporate consumers, enabling more flexible and large-scale renewable energy procurement beyond traditional quotas. On the infrastructure front, the PDE arm serves as a strategic hedge, with its switchgear and transformer offerings tapping directly into the utility sector's grid modernization efforts. Simultaneously, the ELP segment is positioned as a primary beneficiary of Malaysia’s data centre surge, where specialized lightning protection and earthing systems are mission critical. By integrating solar EPCC with industrial electrical solutions, PEKAT has successfully created a "one-stop" synergy that remains its core competitive advantage in capturing the accelerating regional energy transition.
Earnings revision. As the results were within our expectations, we make no changes to our FY26-27 earnings forecasts. We continue to project steady growth as the Group capitalizes on the National Energy Transition Roadmap (NETR). We also introduce our FY28 earnings forecast of RM70.6m.
Valuation & Recommendation. Reiterate BUY with an unchanged TP of RM1.59. Our valuation is derived from an SOP approach: 30x FY26F P/E for the high-growth solar EPCC segment and 15x FY26F P/E for the ELP and Trading segments. We continue to favour PEKAT for its synergistic business model, strong margins in the Power distribution division, and sustainable order book. Furthermore, PEKAT’s consistent financial track record and strengthened market capitalization now firmly qualify the Group for a potential transfer to the Main Market of Bursa Malaysia, which we view as a significant upcoming rerating catalyst.
Risks. Heavy reliance on government initiatives. Inability to secure new contracts. Spike in raw material costs such as copper and steel.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.878434 | 3.909825 |
| EUR | 4.590523 | 4.595422 |
| CNY | 0.567561 | 0.568180 |
| HKD | 0.495911 | 0.499417 |
| SGD | 3.065484 | 3.087199 |