HE Group: Expanding DC Footprint

Analysts from the Public Investment Bank attended HE Group’s post-results analyst briefing recently and remain positive on the group’s outlook.

They gather that the group is deepening its involvement in the data centre (DC) field, which continues to gain traction. The outstanding orderbook stood at RM84.7m, of which 64% is DC-related.

Meanwhile, the tender book amounted to RM1bn, with about 90% comprising DC-related projects. The group is targeting orderbook replenishment of around RM200m for FY26F.

HE Group: Expanding DC Footprint

“In view of the improving project mix and higher-margin DC contributions, we raise our FY26F earnings forecast by c.20%. While DC remains the key growth driver, HE Group continues to maintain its presence in the semiconductor segment while exploring opportunities in the Battery Energy Storage System (BESS) space.

“All in, we maintain our Outperform call with a higher TP of RM0.54 as we roll forward our valuation to FY27F, based on c.14x FY27F EPS,” writes Public Investment Bank.

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