Kawan Renergy: Data Centre Win Rebuilds Orderbook

Kawan Renergy (KENERGY), via its wholly owned subsidiary Kawan Green Energy SB, has secured a RM70.4m purchase order to supply and deliver diesel generator systems to a data centre operator in Peninsular Malaysia’s Central Region, with completion slated within one year.

The contract lifts the group’s orderbook to RM157.2m, bringing it back above the RM100m level and easing the orderbook concern highlighted in a 31 March results review.

Kawan Renergy

“We believe the award reflects KENERGY’s positioning as a certified system integrator for Rolls-Royce’s MTU diesel generator sets, which are recognised for reliability and lower-emission performance, making the Group a credible standby power solutions provider for data centre operators,” says Public Investment Bank.

This also marks KENERGY’s first entry into the data centre backup power segment, and the analyst firm views it as a structurally growing vertical amid Malaysia’s ongoing data centre expansion.

“Given KENERGY’s share price that has run ahead of our TP, we downgrade the stock to Neutral (from Outperform) with an unchanged TP of RM0.54, based on 16.3x CY26F EPS of 3.3 sen, as we keep earnings forecasts unchanged given this supply and delivery job is part of our existing orderbook assumption and is likely to carry lower margins than its traditional EPCC segment.”

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