HE Group Secures RM102 Million Johor Data Centre Electrical Contract

xr:d:DAFu-Lg5_ho:919,j:3431032246715697967,t:24011206

HE Group has secured a RM102 million data centre subcontract in Johor, boosting its orderbook and earnings outlook while strengthening its position in Malaysia’s expanding data centre sector.

HE Group Secured RM102 Million Data

HE Group has secured a RM102 million subcontract for a data centre project in Johor, marking another significant milestone for the engineering services provider as demand for digital infrastructure continues to grow.

The contract was awarded to its wholly owned subsidiary, Hexatech Engineering Sdn Bhd, covering the supply, installation, testing and commissioning of main electrical works for the data centre. The project was awarded by an Engineering, Procurement and Construction Management (EPCM) company and is scheduled for completion on Sept 19, 2027.

Following the latest contract win, HE Group’s outstanding orderbook has increased to RM272.5 million. The company’s tender book currently stands at approximately RM898 million, compared with around RM1 billion previously.

The new project has exceeded the company’s earlier FY26 replenishment target of RM200 million. As a result, analysts have revised the FY26 replenishment target upward to RM250 million and raised FY27 to FY28 earnings forecasts by an average of 12%.

Despite the stronger earnings outlook, limited near term share price upside has prompted a downgrade in the stock recommendation from Outperform to Neutral, with a higher target price of RM0.59.