MIDF Research is optimistic about the group’s proposed acquisition of 60% of Apex Power Industry Sdn Bhd.
PETALING JAYA: The latest contract win by Pekat Group Bhd
is expected to generate a healthy recurring income for the group throughout a 10-year period.
The solar-photovoltaic provider’s order book remains healthy at RM206.8mil and is expected to grow to about RM320mil by year-end.
The expansion will come from Corporate Green Power Programme (CGPP) engineering, procurement, construction and commissioning projects, said MIDF Research.
It reiterates its “buy” call on the stock given its consistent quarterly performance, and bright prospects with favourable policies such as the CGPP, National Energy Transition Roadmap and the fifth phase of the Large Scale Solar programme.
It maintained its target price for the stock at RM1.32 a share, pegging its financial year 2025 (FY25) earnings per share of 4.7 sen to a forward price-earnings ratio of 28 times.
It is also optimistic about the group’s proposed acquisition of 60% of Apex Power Industry Sdn Bhd, which will give it control over Nilai-based switchgear manufacturer, EPE Switchgear (M) Sdn Bhd.
This allows Pekat to expand its business into power distribution equipment and to tap into new foreign markets, which will strengthen its bottom line significantly starting FY25.
Recently its wholly owned subsidiary Solaroo RE (Maldives) Pvt Ltd entered into a 10-year power purchase agreement (PPA) to supply PV energy to Sun Investments Pvt Ltd in the Maldives.
Solaroo will design, construct, install, own, operate and maintain a solar PV energy generating system with a capacity of 1,727 kilowatts peak and a battery energy storage system capacity of 1,398 kilowatt hours (kWh) on a site at Sun Siyam Vilu Reef Maldives.
The contract value of US$6.9mil is based on the generation of approximately 25.45 million kWh of electricity over the 10-year period.
