Powerwell Holdings Berhad - Secures RM190.4m in New Data Centre Switchgear Orders
Tue, 22-Sep-2026 07:42 am
by Research Team • Apex Research

Counter

PWRWELL (0217)

Target Price (RM)

1.10

Recommendation

Hold

PWRWELL secured RM190.4m in two POs from a leading data centre MNC for LV switchgear supply and delivery.

This continues PWRWELL's repeat-customer data centre wins, following the RM158.8m in June 2026 and RM33.2m of smaller Puncak Alam/Elmina Business Park. Together with today's RM190.4m, the Group’s current outstanding orderbook stands at approximately RM450.0m.

Medium-term outlook stays positive, supported by (i) DC build-out (capacity to RM500m by FY2028), (ii) Tenaga Kenari as a second earnings engine, and (iii) the new Shah Alam plant to restore margins by FY2028.

No change to our earnings forecasts as the bulk of the newly secured orders will be recognised in FY28F and are already factored into our existing project execution assumptions.

We maintain HOLD with an unchanged TP of RM1.10, based on an unchanged 16.2x PE multiple applied to a blended FY27F-FY28F core EPS estimate of 6.8sen.

 

Two new orders in a roll. On 21 September 2026, PWRWELL announced that it has received two purchase orders (POs) totalling RM190.4m (inclusive of Sales & Service Tax) from one of the leading multinational technology corporations specialising in data centres, for the supply and delivery of low voltage switchgear and other related equipment, where first PO amounted to RM63.5m was awarded on 17 September 2026, and 2nd PO amounted to RM126.9m was awarded in the subsequent day. In addition, we gathered from the management that that the bulk of the projects will carry forward to FY28.

Orderbook swells to c.RM450m. Following the latest RM190.4m orders, PWRWELL's outstanding orderbook has increased from RM268.9m as at 30 June 2026 to approximately RM450m as at today, according to management. This continues the Group's recent run of large data centre wins, following the RM158.8m contract secured in June 2026 and RM33.2m of smaller Puncak Alam/Elmina Business Park orders flagged at the 1QFY27 results briefing.

Outlook. The medium-term outlook on PWRWELL remains positive. The Group is well positioned to benefit from several multi-year structural growth drivers, including: (i) Malaysia's data centre build-out, where a RM500m revenue capacity target by end-FY2028 (from ~RM250- 280m currently) and cubicle output nearly doubling that give it clear runway to capture the wider AI infrastructure investment cycle (ii) the Tenaga Kenari acquisition, which anchors a second earnings engine in East Malaysia's improving infrastructure segment; and (iii) the new Shah Alam/Kota Kemuning factory, which lets the Group bring outsourced fabrication and site support work back in-house from FY2028, restoring the margin currently diluted by outsourcing.

Earnings Revision. No change to our earnings forecasts as the bulk of the newly secured orders will be recognised in FY28F and are already factored into our existing project execution assumptions.

Valuation & Recommendation. We maintain HOLD with an unchanged TP of RM1.10, based on an unchanged 16.2x PE multiple applied to a blended FY27F-FY28F core EPS estimate of 6.8sen.

Risks. Slowdown in project awards, lower margins due to jobs outsourcing, higher expansion costs, electricity supply constraints or regulatory changes affecting data centre developments.

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