SKB Shutters Corporation Berhad Targets AI Data Center and E-Commerce Growth
SKB Shutters Corporation Berhad is positioned for growth in the data center and e-commerce sectors, with a projected 109% upside by 2026. The company aims to leverage its local market strength and recent operational enhancements to achieve superior risk-adjusted returns.
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SKB Shutters Corporation Berhad anticipates a 50-60% increase in capacity following the completion of its new automated facility in Puncak Alam, set for late 2026. The company operates within a local oligopoly for roller shutters, holding certifications that limit competition from imports.
Despite current market valuation reflecting low growth, historical data shows a revenue CAGR of 17.5% and an EPS growth of 127.6% over five years. A potential re-rating from a PE of 5 to 10, alongside a projected 10% YoY EPS increase, could raise the target price to $1.76. Key risks include fluctuating steel prices and execution challenges related to new plant operations.
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