Rakuten Trade Research Reports

Author: rakutentrade   |   Latest post: Fri, 27 Nov 2020, 8:54 AM


Powerwell Holdings Bhd - Improving Outlook

Author:   |    Publish date:

We remain positive on Powerwell Holdings Bhd’s (“Powerwell”) earnings visibility given its solid orderbook and healthy balance sheet with net cash position. We expect demand for Powerwell’s electricity distribution products to pick up along with construction activities especially from the imminent revival of mega infrastructure projects. Recommend BUY with target price of RM0.33 based on 13.7x PER FY21 as per the Bursa Malaysia Industrial Production Index.

Backed by a solid track record of over 25 years, Powerwell is principally involved in the design, manufacturing and trading of electricity distribution products, predominantly low voltage (“LV”) switchboards and medium voltage (“MV”) switchgears. Products are mainly supplied to main contractors, mechanical and electrical contractors, and EPCC companies across various industries. Powerwell’s near term earnings visibility is well supported by an orderbook of RM67m. We expect job flows to enhance due to potential roll out of infrastructure projects as the electricity distribution industry is highly correlated with construction activities.

Powerwell is the only local company authorised by Siemens, a German conglomerate to manufacture and sell LV switchboards and MV switchgears in Malaysia as well as an authorised switchboards manufacturer and seller of world’s leading electrical equipment brand, Schneider in Malaysia. More than 80% of revenue is contributed by local market while its internationally certified products further strengthen their presence in regional markets such as Indonesia and Vietnam.

To recap, Powerwell which made its debut on ACE Market in Jan this year plans to develop its own ““Powerwell” branded MV switchgear where preparation has started in May 2018. Moving forward, more products are also set to be IEC standards certified to increase product marketability.

Powerwell’s balance sheet is healthy sitting on net cash of RM10.4m with gearing ratio of 0.10x. Net profit is expected to register double-digit growth of over 20% over the next 2 years supported by solid orderbook and anticipation of higher job orders.

Source: Rakuten Research - 27 May 2020

Share this

Related Stocks

Chart Stock Name Last Change Volume 
PWRWELL 0.265 0.00 (0.00%)

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate


Top 10 Active Counters
 SCOMNET 2.010.00 
 KOTRA 3.130.00 
 UCREST 0.150.00 
 GENM-C73 0.0050.00 
 PUC 0.1750.00 
 WILLOW 0.430.00 
 EAH-WE 0.020.00 
 IRIS 0.360.00 
 TOPGLOV-C79 0.2150.00 
 BTECH 0.500.00 


1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!