According to Malacca Securities Research, MyDCD Berhad enters FY27 with a RM1.32bn outstanding order book, equal to 2.0 times its FY26 revenue. The research house projects core PATMI of RM81.2m to RM120.4m over the next three years, a 21.7% earnings CAGR.
What MyDCD Does
MyDCD Berhad integrates mechanical, electrical, plumbing and fire protection systems for critical infrastructure, mainly Tier I to Tier IV data centres. It also provides preventive and corrective maintenance services and supplies parts.
The research house noted that the group completed integration works worth an aggregate RM1.35bn between FY23 and 30 September 2026, covering new builds as well as upgrades and retrofits. Its credentials include Vertiv Elite Black Diamond Partner (20M tier) status, partnerships with Huawei and Riello UPS, and ISO 9001, 14001 and 45001 certifications.
Key Financial Numbers
Malacca Securities highlights a sharp margin gap between the two business lines. The maintenance and parts segment posted a gross profit margin of 43.0% in FY26, against 14.1% for MEPF integration.
The order book is split between RM1.27bn of MEPF integration work and RM53.1m of maintenance contracts. Of the total, RM515.4m is expected to be recognised over the rest of FY27 and RM782.1m in FY28, with the remaining RM22.1m of maintenance work stretching to FY32.
The group had 76 active maintenance contracts as at 30 September 2026. The research house sees this recurring base as a partial cushion against the lumpy, project-based nature of the integration business.
Valuation Basis
Malacca Securities arrives at its RM1.07 fair value by applying a 20.5x PE to mid-FY28f EPS of 5.23 sen. The 91.1% upside is measured against the RM0.56 IPO price.
Of the RM187.6m gross proceeds from the public issue, RM134.0m (71.4%) is earmarked for working capital. That money funds performance bonds for larger tenders and payments to subcontractors, which the research house says should let the group bid for bigger packages without stretching its balance sheet.
Risks to the Thesis
The report figures point to customer concentration. Binastra Builders Sdn Bhd, a subsidiary of Binastra Corporation Berhad, accounts for RM822.3m or 62% of the order book across three projects and contributed 85.4% of FY26 revenue.
Subcontracted costs made up 98.6% of FY26 cost of sales, so execution depends heavily on third-party contractors. Earnings also rely on winning larger tenders, which Malacca Securities notes will require the IPO-funded working capital to be deployed effectively.
What This Means for Retail Investors
The research house’s numbers show a company with strong forward revenue visibility but a narrow customer base. Retail investors can check how far the order book converts into revenue each quarter, and whether the maintenance segment grows as a share of earnings. The full report is available from M+ Online at https://mplusonline.com/research-report/detail/1485, and it contains the complete rating and assumptions behind these figures.
Key Takeaways
- Malacca Securities assigns a fair value of RM1.07 per share, based on a 20.5x PE on mid-FY28f EPS of 5.23 sen.
- The research house projects core PATMI of RM81.2m to RM120.4m over three years, a 21.7% CAGR.
- The RM1.32bn order book provides visibility through FY28, with RM782.1m scheduled for FY28.
- Maintenance carries a 43.0% gross margin, versus 14.1% for MEPF integration.
- Binastra contributed 85.4% of FY26 revenue, making customer concentration a key figure to monitor.
Frequently Asked Questions
What is Malacca Securities’ fair value for MyDCD Berhad?
Malacca Securities has set a fair value of RM1.07 per share for MyDCD Berhad, implying 91.1% upside from the RM0.56 IPO price. The research house derives this from a 20.5x PE applied to mid-FY28f EPS of 5.23 sen.
How large is MyDCD Berhad’s order book?
According to Malacca Securities Research, the outstanding order book stood at RM1.32bn as at 30 September 2026, or 2.0 times FY26 revenue. It comprises RM1.27bn of MEPF integration work and RM53.1m of maintenance contracts.
Why does customer concentration matter for MyDCD Berhad?
Binastra Builders Sdn Bhd accounted for 85.4% of FY26 revenue and RM822.3m, or 62%, of the order book, according to the research house. A large share of earnings tied to one client makes the timing of its projects a key factor.
The full report is available from M+ Online at https://mplusonline.com/research-report/detail/1485.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 30 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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