Company Coverage
Pekat Group (PEKAT MK): 2Q26: In Line; Growing Revenue Mix Leads To Margin Expansion
BUY (Maintained)
Current price:
Target price:
Upside:
RM1.77
RM2.00
+13.0%
Analyst
Analyst
Highlights
Pekat reported robust 2Q26 net profit of RM14.2m, driven by: a) healthy progress of its utility-scale EPCC project, b) robust ELP project execution and elevated trading orders;,and c) record revenue from EPE Switchgear.
Pekat declared a 1 sen net DPS in the current quarter, well within our expectations. Pekat’s orderbook currently stands at a record RM908m.
BUY on weakness with a target price of RM2.00, based on 25x PER and 2026 EPS of 8.0 sen.
Analysis
1H26: In line. Pekat Group (Pekat) reported strong 2Q26 net profit of RM14m (+29% yoy; +14% qoq). Earnings were driven by: a) healthy progress of its utility-scale EPCC project, b) robust ELP project execution (primarily from data centre jobs), and c) strong revenue contribution from EPE Switchgear (+35% yoy; +43% qoq). The higher revenue mix from EPE Switchgear contributed to the group’s qoq net margin expansion to 8.1%. 1H26 net profit of RM27m makes up 49% and 48% of house and street estimates respectively.
Highlights
Pekat reported robust 2Q26 net profit of RM14.2m, driven by: a) healthy progress of its utility-scale EPCC project, b) robust ELP project execution and elevated trading orders;,and c) record revenue from EPE Switchgear.
Pekat declared a 1 sen net DPS in the current quarter, well within our expectations. Pekat’s orderbook currently stands at a record RM908m.
BUY on weakness with a target price of RM2.00, based on 25x PER and 2026 EPS of 8.0 sen.
Analysis
1H26: In line. Pekat Group (Pekat) reported strong 2Q26 net profit of RM14m (+29% yoy; +14% qoq). Earnings were driven by: a) healthy progress of its utility-scale EPCC project, b) robust ELP project execution (primarily from data centre jobs), and c) strong revenue contribution from EPE Switchgear (+35% yoy; +43% qoq). The higher revenue mix from EPE Switchgear contributed to the group’s qoq net margin expansion to 8.1%. 1H26 net profit of RM27m makes up 49% and 48% of house and street estimates respectively.
BUY (Maintained)
Current price:
Target price:
Upside:
RM1.77
RM2.00
+13.0%
Analyst
Analyst
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