Good Morning All,
We issued a 1Q27 results note on our coverage stock Powerwell Holdings Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Earnings broadly within expectations. 1Q27 core PATMI rose 17.5% QoQ and 114.6% YoY to RM9.0m, accounting for 31.1% of our and 26.9% of consensus full-year FY27f earnings estimates (RM29.0m/RM33.6m). While tracking ahead of the 25% run rate, results remain broadly within expectations due to margin normalisation and milestone-based project execution lumpiness.
📌 QoQ/YoY. Revenue surged 113.0% QoQ and 145.6% YoY to RM88.3m, propelled by accelerated data centre billings and contributions from Tenaga Kenari. Gross margin normalised sharply to 24.1% (from 39.8% in 4Q26 and 27.3% in 1Q26) due to front-loaded mobilisation costs, increased outsourcing, and higher production headcount.
📌 YTD. 1Q27 revenue stood at RM88.3m (+145.6% YoY), with PBT and core PATMI climbing 120.4% YoY and 114.6% YoY to RM12.9m and RM9.0m, respectively.
📌 Outlook. Medium-term prospects are anchored by a RM268.9m order book as of 30 June 2026, ongoing data centre demand, and geographic expansion into East Malaysia via Tenaga Kenari, though near-term margins remain sensitive to project scaling.
📌 Forecast. We maintain our FY27f–28f core PATMI forecasts of RM29.0m/RM33.5m, refraining from extrapolating strong 1Q27 revenue given potential project timing volatility.
📌 Downgrade to SELL, TP RM0.91. We downgrade PWRWELL to SELL from HOLD with an unchanged TP of RM0.91, based on an unchanged 17.0x P/E applied to mid-FY28f EPS of 5.37 sen, implying a 16.5% downside following the recent share price rally to RM1.09.
M+ Global Research Team
28 August 2026
August 28, 2026 1.4K 9
