Powerwell Holdings Bhd shares climbed to a record high after the company announced it had won purchase orders worth RM190.4 million, according to theedgemalaysia.com. The orders relate to a data centre project in Johor and represent the largest contract the company has secured to date, theedgemalaysia.com reported.
The Edge Malaysia said the contract win lifted Powerwell's share price to a new peak. The Star and The Malaysian Reserve both reported the same RM190.4 million order value, with The Malaysian Reserve describing the work as orders for a Johor data centre. BusinessToday Malaysia reported that the company secured two purchase orders for the project.
The scale of the contract stands out against earlier analyst positioning. The Malaysian Reserve reported that Powerwell maintained a Hold rating with a target price of RM1.10, a call issued alongside news of the order win.
Powerwell's business covers electrical equipment and related solutions, and the Johor order ties the company to Malaysia's growing data centre construction activity in the southern state.
Investors will be watching for further details on the delivery schedule and revenue recognition for the two purchase orders, and whether the contract win prompts analysts to revisit their current Hold rating and RM1.10 target price.
