OCK’s 2026 listing to boost DC value and visibility

PETALING JAYA: The impending listing of OCK Group Bhd’s power solutions subsidiary, targeted for early 2026, is expected to unlock value and increase visibility of its emerging data centre (DC) business, which is a key growth driver.

Prior to the planned listing of EI Power Bhd (EIP) on the ACE Market of Bursa Malaysia, it will undergo a restructuring exercise to acquire the entire equity interest in EI Power Technologies Sdn Bhd (EIPT), which is 52%-owned by OCK.

EIPT has carved a niche as an engineering, procurement, construction, and commissioning contractor of mission-critical power solutions for DCs.

RHB Research said over the past 18 months, EIPT had completed over RM70mil in power back-up projects for hyperscalers and colocation DCs, and as of end-August, had a strong orderbook of RM70mil and tenderbook of RM100mil

EIPT’s revenue and post-tax grew at a compounded annual growth rate of 13% and 76% from financial year 2022 (FY22) to FY24.

Its gross profit margin improved significantly to 30% in FY24, from 16% in FY22.

According to OCK’s disclosures, DC revenue surged 77% quarter-on-quarter to a record high in the second quarter of financial year 2025 (2Q25), driven by stronger revenue recognition. The DC segment accounted for about 14% of group revenue, up from 8% in 1Q24.

“We estimate EIP could potentially fetch an equity value of RM250mil to RM334mil based on a target price-to-earnings of 15 to 20 times FY27 forecast earnings, which translates into nine to 12 sen per OCK share stake based on its 37% stake,” the research house said in a report.

The money raised from the initial public offering will be used to build a new head office and fund business growth.

Furthermore, RHB believes that the market is currently ascribing little or no value to OCK’s regional telecommunication tower (TowerCo) business that generates significant recurring revenue and earnings before interest, taxes, depreciation and amortisation (Ebitda) .

“We see the latent value of OCK Group’s assets as a key share-price catalyst. We are maintaining a ‘buy’ call with a higher 72 sen target price (from 60 sen), which is 66% upside. Yield is circa 3%.”

The TowerCo segment’s portfolio includes over 5,500 sites across Malaysia and Indochina.

Going by its revenue and Ebitda, OCK’s TowerCo business is potentially worth RM760mil to RM905mil or 70 sen to 85 sen per OCK share, said RHB.

According to the research firm, management is not ruling out additional mergers and acquisitions for TowerCo and value illumination exercises in the medium to longer term.