Malacca Securities Research continues to favour HKB among its Malaysian stock ideas, pointing to an RM851m order book that it puts at roughly 6.8 times HKB’s FY25 revenue. The call came in the same note that flagged Alphabet’s disappointing 3Q26 results and negative free cash flow as a possible drag on local tech sentiment.
Why the Order Book Is the Core of the Call
The research house’s main argument rests on the size of the order book relative to the company’s top line. On simple arithmetic, a 6.8x multiple implies FY25 revenue of about RM125m, which is the basis for the order book being described as sizeable. Malacca Securities did not, in the summary we reviewed, break down the order book by project or by year of delivery.
What HKB Does and Where It Fits
According to Malacca Securities Research, HKB stands to benefit from utility and renewable energy spending, including high-voltage substation projects. The research house also pointed to SLVEST’s increased stake of approximately 16.4% in the company, which it said could strengthen HKB’s access to these opportunities. The link is indirect, since it depends on SLVEST’s project flow rather than on HKB’s contracts alone.
Key Numbers Behind the Note
The headline figures are the RM851m order book and the 6.8x revenue multiple, both attributed to Malacca Securities. The research house also highlighted related exposure through KEEMING, which holds an RM70m M&E subcontract from SLVEST subsidiary Atlantic Blue for a 99.99MWac solar plant in Bukit Selambau, Kedah.
On the broader market, the FBM KLCI finished higher with 657 gainers against 410 losers. The Technology sector rose 1.83%, while Property fell 0.48%, according to the same M+ Online market review.
Valuation Basis and What the Summary Leaves Open
The report summary frames HKB as a favoured stock but does not state a target price or spell out the valuation method. Malacca Securities’ full research note, available from M+ Online, is where the price target and its underlying assumptions would be set out.
Readers relying on the order book multiple should note that it is a revenue-based comparison, not an earnings-based valuation. The summary does not indicate how the research house treats margins or cash flow for HKB.
Risks Flagged in the Research
Malacca Securities flagged that Alphabet’s weak results and negative free cash flow could weigh on local sentiment, particularly in the Technology sector. The Fed’s decision to hold rates, with no clear signal from Chair Warsh on December, adds macro uncertainty. The research house’s framing implies that HKB’s upside depends on converting its order book into revenue on schedule, though the summary does not quantify this timeline.
What This Means for Retail Investors
For retail investors, the note is a reminder that a large order book is only as useful as its delivery pace and margins. The report’s sector-level data showed Technology outperforming on the day, but the research house warned that US tech weakness could spill over. Anyone weighing the stock would want to read the full M+ Online report for the target price and the assumptions behind it.
Key Takeaways
- Malacca Securities Research continues to favour HKB, citing an RM851m order book.
- The order book equals about 6.8 times FY25 revenue, according to the research house.
- SLVEST’s increased stake of approximately 16.4% is seen as a potential boost to HKB’s access to utility and renewable projects.
- KEEMING offers related exposure through an RM70m M&E subcontract for a 99.99MWac solar plant in Kedah.
- The target price is not in the summary; the full note is available from M+ Online.
Frequently Asked Questions
What is Malacca Securities’ call on HKB?
Malacca Securities Research continues to favour HKB, according to the research house’s note published on 2026-10-29. The call is based on an RM851m order book, which the research house puts at about 6.8 times FY25 revenue. The full report from M+ Online contains the detailed rating and target price.
How big is HKB’s order book compared with its revenue?
According to Malacca Securities Research, HKB’s RM851m order book is approximately 6.8 times its FY25 revenue. On simple arithmetic, that implies FY25 revenue of about RM125m. The research house did not break down the order book by project in the summary.
How does SLVEST’s stake affect HKB?
The research house noted that SLVEST’s increased stake of approximately 16.4% could strengthen HKB’s access to utility and renewable energy opportunities, including high-voltage substation projects. Malacca Securities characterised this as a possible tailwind rather than a guaranteed contract source. Full details are available from M+ Online.
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Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 29 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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