Pekat Group charts new record high after contract wins, analysts raise target price
Malaysian engineering firm Pekat Group has reached a record stock price following new contract wins for lightning and surge protection systems. Analysts remain bullish on the company due to its role in supporting the country's growing data center infrastructure.
Why it matters
Illustrates the economic impact of the data center boom on specialized engineering and infrastructure service providers.
BURSA SGX Home Hot Stock Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Sept 8): Pekat Group Bhd (KL: PEKAT ) rose to a new all-time high while analysts scrambled to raise their forecasts after the engineering services company’s latest contract wins.
The consensus is bullish that the firm, which specialises in lightning and surge protection systems, will gain from accelerating data centre construction. Despite commanding nearly half of the market share for such systems, Pekat’s orders on hand make up less than 20% of the potential.
That suggests “ample room for further contract wins”, according to Phillip Capital.
Pekat climbed as much as 12 sen or nearly 6% to RM2.13 in Tuesday trading. The stock ended the day at RM2.07 as more than four million shares exchanged hands.
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