EI Power Berhad landed its largest contract to date, a RM90.1m subcontract for the full fuel system package of a Johor data centre, with completion slated for September 2027. The research house noted that the unbilled order book more than doubled from RM99.9m in March 2026 to RM222.5m as of June 2026.
What EI Power Berhad Does
The company’s recent earnings momentum is driven by data centre engineering, procurement, construction and commissioning (EPCC) work, according to M+ Online’s research team. Management expects the Johor contract to contribute positively to earnings over the project period.
The group is also extending its footprint into Thailand, citing sizeable digital infrastructure investment there. Malacca Securities noted that EI Power has secured all the necessary licences and holds a RM90m Thai tender book, including five outstanding tenders from existing Malaysian customers.
Key Financial Numbers Post-Listing
For 1H26, EI Power Berhad posted revenue of RM45.2m and normalised profit after tax of RM12.3m, excluding one-off listing expenses. The research house’s figures imply 1Q26 revenue of about RM20.8m, so 2Q26 revenue of RM24.4m represents a 17.8% quarter-on-quarter rise.
Normalised PAT in 2Q26 reached RM6.3m, up 4.4% QoQ, which is a slower pace than the top-line growth. Malacca Securities attributed the improvement to data centre EPCC projects.
Valuation Basis and Technical Outlook
Malacca Securities Research did not, in the summary available, publish a stand-alone valuation derivation for the stock. Instead, the research house pointed to the Bloomberg consensus target price of RM1.09, after analysts upgraded their targets following the results.
On the chart, the stock formed a recent high of RM1.07-1.09 before pulling back toward its EMA40 and the RM0.825-0.850 support zone. M+ Online’s research team projects that the price will hold above that support and rebound toward the prior resistance band.
The research house is explicit that a break below the support zone would invalidate the setup. That single level is therefore the key reference point for the technical view.
Risks to Watch
Execution is the first risk, since the Johor contract runs until September 2027 and any delay would push back the earnings contribution. The unbilled order book of RM222.5m gives visibility, but it depends on milestones being delivered on schedule.
The Thai expansion carries its own uncertainty, as the RM90m tender book has not yet converted into awarded contracts. Heavy reliance on the data centre segment also leaves earnings exposed to any slowdown in that sector.
What This Means for Retail Investors
The research house’s technical and fundamental points give retail investors a clear set of reference levels to monitor, namely RM0.825-0.850 for support and RM1.07-1.09 for resistance. Those levels are useful context, but they are not a substitute for reading the full analysis.
Investors should check the complete report from M+ Online for the detailed assumptions behind the outlook and any formal rating from Malacca Securities. The decision on whether and how to act remains with each reader.
Key Takeaways
- Malacca Securities highlights a RM90.1m Johor data centre subcontract, with completion due September 2027.
- The unbilled order book rose to RM222.5m as of June 2026 from RM99.9m in March.
- 2Q26 revenue reached RM24.4m, up 17.8% QoQ, with normalised PAT of RM6.3m.
- The Bloomberg consensus target price is RM1.09, while the technical support zone sits at RM0.825-0.850.
- The Thai expansion includes a RM90m tender book and five outstanding tenders from existing Malaysian customers.
Frequently Asked Questions
What is the target price for EI Power Berhad?
The excerpt of the research summary cites a Bloomberg consensus target price of RM1.09, rather than a standalone figure from Malacca Securities. Readers should consult the full report from M+ Online for any target price the research house has set.
How large is EI Power Berhad’s biggest contract?
According to Malacca Securities Research, the company accepted a RM90.1m subcontract for the full fuel system package of a Johor data centre. Completion is slated for September 2027.
What support level is the research house watching?
Malacca Securities’ technical outlook identifies the RM0.825-0.850 zone as the key support, and the research house said a break below it would invalidate its setup. The stock’s prior high of RM1.07-1.09 is the resistance level it expects a rebound to retest.
📊 On AI Stock Terminal: EIPOWER quarterly results · EIPOWER announcements
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 16 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.
Want access to full M+ Online research reports and AI stock analysis? Contact Dexter Chia, AI-Driven Remisier at Malacca Securities Sdn Bhd. M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
