Powerwell Holdings Berhad - Powering the AI Infrastructure Revolution
Thu, 30-Jul-2026 06:55 am
by Team Coverage • Apex Research

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PWRWELL (0217)

Target Price (RM)

1.10

Recommendation

Buy

  • Malaysia's data centre capacity is set to nearly triple by 2030 (~4.5GW to ~12.9GW), implying a RM128–162bil addressable M&E market where PWRWELL, the only Malaysian manufacturer licensed across both Siemens LV and MV ranges, already captures this directly, with data centres at 35% of its RM150.8m order book and 73% of its RM410m tender pipeline.

  • We forecast a 2-year c.45.7% CNP CAGR through FY27F-Y28F, underpinned by expanded manufacturing capacity, doubled production in Indonesia from August 2026 and ongoing automation in Malaysia, strengthening execution capacity and operating leverage. 

  • The Tenaga Kenari acquisition offers more than just an initial ~4.5%/3.8% uplift to Group CNP in FY27F/FY28F, it also hands PWRWELL its first East Malaysia manufacturing base and an established Sarawak Energy Berhad relationship. 

  • Initiate BUY, TP RM1.10 (+29.7% upside). Our TP applies 16.2x FY27F–28F blended EPS of 6.8sen, a +0.5SD premium to PWRWELL's 3-year average P/E of 14.7x.

 

Key Investment Highlights

Structural Beneficiary of Malaysia's AI and Data Centre Investment Supercycle. Malaysia's data centre capacity is projected to expand from ~4.5GW to ~12.9GW by 2030, implying a RM128–162bil addressable M&E market. PWRWELL's well established LV/MV distribution position captures this demand directly, with data centres making up 35% of its RM150.8m order book and 73% of its RM410m tender pipeline, including its largest-ever contract win of RM158.8m, underscoring improving execution capability and earnings visibility.

 

Capacity Expansion Underpins the Next Leg of Growth. We forecast CNP to nearly double to RM43.7m in FY27F (+81.7% YoY) and reach RM51.1m in FY28F (+16.9% YoY), as the Indonesian facility's doubled output capacity (from August 2026) and ongoing process automation initiatives let the Group scale into larger, higher-value projects.

 

Tenaga Kenari Acquisition Broadens Regional Reach. The Tenaga Kenari acquisition is not just about delivering a profit-guaranteed of RM4.0m p.a. combined PAT, an initial ~4.5%/3.8% uplift to Group CNP in FY27F/FY28F, it also gives PWRWELL its first East Malaysia manufacturing presence and an established Sarawak Energy Berhad relationship, positioning the Group to participate in Sarawak's data centre and renewable energy build-out.

 

Valuation & Recommendation. We initiate coverage on PWRWELL with a BUY recommendation and a target price of RM1.10, derived by applying a 16.2x P/E multiple to our FY27F-FY28F blended core EPS of 6.8sen, and supported by a three-star ESG rating.

 

Risks. Slowdown in project awards, slower AI infrastructure investments, delays in hyperscale developments, electricity supply constraints or regulatory changes affecting data centre developments.

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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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