Malakoff Shares Active After Turbine Reservation Deal With Mitsubishi Power

KUALA LUMPUR, Oct 14 (Bernama) -- Shares of Malakoff Corporation Bhd were among the most actively traded in early session today after the company announced that it had entered into a reservation agreement (RA) with Mitsubishi Power Ltd.

At 10.33 am, Malakoff’s shares were unchanged at RM1.06, with 12.86 million shares changing hands.

In a filing with Bursa Malaysia yesterday, Malakoff said the RA involves the reservation of two sets of gas turbines and gas turbine generators for use in a new 1,400-megawatt (MW) gas-fired power plant project in the southern region of Peninsular Malaysia.

CGS International Securities Malaysia Sdn Bhd viewed the development positively, noting that the RA allows Malakoff to secure critical gas turbine equipment in advance, mitigating supply chain and scheduling risks while improving its competitive positioning for upcoming project awards in Malaysia.

“These factors are increasingly crucial for new capacity awards as Malaysia faces growing urgency to add generation capacity amid surging demand from data centres,” it said in a note today.

The research house added that the move is particularly significant given the tight global turbine supply, with limited manufacturing slots and long lead times raising concerns over power plant developers’ ability to deliver projects on schedule.

“By securing early reservations, Malakoff effectively addresses this bottleneck, ensuring access to scarce equipment and reinforcing its readiness for timely execution once projects are confirmed,” it said.

CGS International maintained its ‘Add’ call on Malakoff with a target price of RM1.20.

-- BERNAMA