SKA Capital Strong Growth With Rising Power Infrastructure Need

SKA Capital Bhd (SKACAP) is poised for robust growth, supported by rising electricity demand and continued investment in Malaysia’s power infrastructure sector. The company provides a wide range of power infrastructure engineering solutions, including civil and structural engineering, underground utilities engineering, electrical and mechanical engineering, and engineering, procurement, construction and commissioning (EPCC) services for power substations.

SKA Capital Power Infrastructure

The group also engages in the trading of construction materials and electrical devices and equipment used in power infrastructure projects. Its customer base primarily consists of main contractors, project owners and a utility company involved in power-related developments.

Analysts have assigned a fair value of RM0.70 per share to SKACAP, based on an estimated price-to-earnings ratio (PER) of approximately 16 times its FY2027 forecast earnings per share. This valuation represents a discount of around 20% to the peer average PER of about 20 times, reflecting the company’s relatively smaller market capitalisation and customer concentration.

Looking ahead, SKACAP is expected to deliver a three-year earnings CAGR of approximately 27%, driven by growing demand for power infrastructure, expanding underground utilities capabilities, and its ability to secure larger, more complex projects.

Source: PIB

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