Jati Tinggi Poised for Growth with RM1.00 Target Price on TNB and Data Centre Projects

Jati Tinggi Bhd (JT) has been initiated with a BUY call and a target price of RM1.00, reflecting a 34% upside potential based on 16x FY2027 earnings. Analysts highlight JT’s evolution into a pure-play utilities contractor transitioning toward main contractor status for Tenaga Nasional Bhd (TNB) and hyperscale data centre projects. The company stands to benefit from TNB’s RM35 billion Regulatory Period 4 (2025–2030) grid capex, which ensures multi-year project visibility.

Jati Tinggi Growth Momentum

JT’s order book has tripled year-to-date to RM704 million, with a RM2 billion tender pipeline that could add substantial upside. Margins are also expected to recover to 8% by FY2027 as legacy projects taper off. Supported by low gearing and new equity injection, JT is positioned for an S-curve earnings trajectory driven by Malaysia’s infrastructure and digital expansion. Key risks include customer concentration, project delays, and input cost volatility.

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