KUALA LUMPUR: UUE Holdings Bhd’s latest win of its largest-ever contract in Singapore will position the company to benefit from SP PowerAssets’ new capital expenditure (capex) cycle, said Public Investment Bank Bhd (PublicInvest).
“This will be supported by its strong relationships with key engineering, procurement, construction and commissioning contractors such as Wee Guan Construction Pte Ltd and Taihan for future project flows,” it said in a note.
UUE’s unit Konnection Engineering Pte Ltd secured the S$20.9 million (RM67.3 million) contract from Wee Guan for the supply and installation of 230-kilovolt (kV) power cables, auxiliary cables and accessories.
The latest win comes on the heels of an earlier S$8.4 million (RM28.1 million) award in Singapore, lifting UUE’s orderbook to a record RM521.9 million.
Public Invest said UUE has also expanded its workforce and subcontractor base to support project rollouts across Peninsular Malaysia.
It noted that about RM344 million of the total orderbook is derived from Tenaga Nasional Bhd (TNB) related contracts within the 11kV to 33kV distribution segment.
“While the current tenderbook only stands at RM58.9 million, we believe the doubling of TNB’s capex under Regulatory Period 4 2025–2027 will create spillover opportunities for the distribution segment.
“Furthermore, timely project delivery could unlock additional upside through variation orders or extensions of ongoing contracts,” it said.
Overall, PublicInvest remains positive on earnings momentum improving in the second half of financial year 2026, underpinned by stronger project rollouts and healthy tender activities.
The firm reiterated its “Outperform” call with a higher target price of 73 sen from 67 sen previously.
“This reflects the potential earnings upside anchored by the company’s record-high RM521.9 million orderbook,” it said.
© New Straits Times Press (M) Bhd
