Broker Name: Maybank Investment Bank Berhad
Date of Report: April 14, 2026
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Stock: Northeast Group (NE MK)
- Action: BUY (Maintain)
- Target Price (TP): MYR1.10 (upside of +47%)
- Key Points:
- Northeast Group is well-positioned to sustain its growth trajectory, supported by continued order inflows from both new and existing customers in high-growth sectors such as photonics and data centers.
- Orderbook expected to expand to MYR60m (from MYR43m in 1QFY26), with strong utilization (~80%) until new capacity comes online in 2HCY26.
- Earnings growth outlook remains robust, with a 3-year core net profit CAGR of 20% forecasted for FY25–28E.
- Valuation is based on 25x CY26E PER (–1.5SD to sector’s 5-year forward mean).
- Key risks include ramp-up delays, cost overruns, USD weakness, and high customer concentration (top 2 customers contribute ~55% of FY25 revenue).
above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking
