UUE Shares Up In Early Trade

KUALA LUMPUR, Aug 12 (Bernama) -- UUE Holdings Bhd shares rose in early trade today, buoyed by positive market sentiment.

At 10.42 am, UUE shares gained 1.0 sen to 79.5 sen, with 98,300 shares traded. 

In a research note today, Public Investment Bank Bhd said the underground utilities engineering solutions provider is well-positioned to capitalise on the rollout of Tenaga Nasional Bhd’s regulatory period 4 (RP4) and Singapore’s energy infrastructure upgrades.

The investment bank said this is backed by an all-time high order book of RM421.7 million as at the end of June 2025 and strong alignment with national grid enhancement programmes.

It noted UUE has demonstrated robust topline and earnings momentum, with revenue and profit after tax and minority interests recording five-year (2021-2025) compound annual growth rate (CAGR) of 34.6 per cent and 32.9 per cent, respectively.

“We expect UUE to deliver 24.3 per cent three-year CAGR for the 2026-2028 forecast, primarily supported by favourable industry tailwinds, with the new factory expansion and subsea horizontal directional drilling initiatives enhancing UUE’s ability to capture broader and higher value opportunities.

“Despite these catalysts, valuation remains undemanding at 13.1 times of 2026 forecast earnings per share, while the group maintains a low net gearing of 0.05 times,” it said.

Public Investment Bank initiated coverage with an “outperform” call with a target price of RM1.00 per share.

“Our conviction is anchored by strong fundamentals and a clear growth trajectory via exposure to long-term grid and utility upgrade cycles,” it said. 

-- BERNAMA