KUALA LUMPUR: HE Group Bhd, an electrical engineering service provider, has capped off an outstanding Q2 and six months (1H) ended June 30, 2026 (FY26).
HE Group’s revenue surged 44.1% year-on-year (YoY) to RM46.1 million in Q2 FY26, up from RM32.0 million in the same quarter last year, driven by higher project progress recognised on ongoing contracts, including its data centre projects.
The power distribution system segment led Q2 FY26’s growth, contributing RM40.6 million or 88.0% of total revenue, complemented by electrical equipment hook-up and retrofitting (RM3.9 million or 8.3%), other building systems and works (RM1.2 million or 2.7%), and trading of electrical products (RM0.5 million or 1.0%).
Gross profit (GP) jumped 55.4% YoY to RM10.1 million in line with the strong top-line performance, compared to RM6.5 million in Q2 FY25, with margins expanding to 21.9% on a healthier project mix and improved cost management.
Net profit rose 59.4% YoY to RM5.1 million from RM3.2 million, comfortably outpacing revenue growth and underscoring the group’s improving operations.
HE Group’s 1H FY26 revenue grew by 13.8% YoY to RM72.4 million, up from RM63.6 million in 1H FY25, as the ramp-up of its ongoing projects continued to gather pace.
Power distribution systems and electrical equipment hook-up and retrofitting together anchored 96.1% of revenue for the period.
GP rose 26.2% YoY to RM15.9 1 million from RM12.6 million, with margins strengthening to 22.0% while net profit climbed a robust 26.2% YoY from RM6.1 million to RM7.7 million.
Managing director Haw Chee Seng said this was one of the group’s strongest quarters since listing, reflecting the discipline and precision the team brings to every project.
“Amid a volatile global economic environment, we remain highly selective in the projects we pursue, a deliberate strategy that lets us direct our manpower and financial resources to where we can make the greatest impact, while building lasting value for our stakeholders.
“Building on our previous data centre projects, we secured our largest data-centre project to-date, a subcontract worth approximately RM102 million on 22 June 2026 in Johor.
“We have further strengthened our pipeline with an additional RM47 million, following the acceptance of a letter of intent on 11 August 2026 for the supply and installation of 275kV electrical works for a further data centre project in Johor, with the formal contract expected to be finalised by the third quarter of 2026,” he said.
Haw said the group also broadened its footprint in the semiconductor and power infrastructure space, securing a RM20 million power distribution contract for a manufacturer of advanced NAND flash memory products on May 18, 2026.
“With sustained investment flowing into the data centre, semiconductor and electric & electronics sectors, we are well placed to keep this momentum going, backed by our track record of technical reliability, operational continuity and compliance,” he said.
As of Aug 17, 2026, the group’s order book stood at a healthy RM292 million, giving strong earnings visibility well into the year ahead.
The group will continue to exercise disciplined project selection and execution to protect margins and deliver on its commitments.
HE Group also remains on solid financial footing, with total cash and cash equivalents of RM56.6 million, outweighing total borrowings of RM0.6 million as of June 30, 2026, a comfortable net cash position that gives the group flexibility to pursue future growth opportunities.
