UUE Holdings Bhd — capitalising on data connectivity demand

UUE Holdings Bhd (KL:UUE), which was listed on the ACE Market in July 2024, is a proxy for data centre theme play on Bursa Malaysia.

The company is leveraging the growing demand for data centre connectivity through its exclusive horizontal directional drilling services, according to Apex Securities head of research Kenneth Leong.

“Backed by an unbilled order book of RM217 million, UUE offers earnings visibility through FY2027. The group aims to expand its production capacity by 73% to 1,600kg per hour with the addition of three new production lines,” said Leong, who set a target price of RM1.10 for the stock.

UUE shares last traded at 89 sen, representing a gain of 270.8% compared to its initial public offering price of 24 sen. At its last traded price, the company’s market capitalisation stood at RM541.4 million.