• MyDCD Berhad is a specialist integrator of mechanical, electrical, plumbing and fire protection (MEPF) systems for critical infrastructure, principally involved in the (i) end-to-end integration of MEPF systems and subsystems for Tier I to Tier IV data centres, and (ii) provision of preventive and corrective maintenance services and parts.  
• We project 3-year earnings CAGR of 21.7%, with core PATMI expected to reach RM81.2m-RM120.4m over the next three years. This growth is underpinned by (i) progressive recognition of its RM1.32bn outstanding order book, (ii) enhanced capacity to bid for larger-scale data centre MEPF tenders, backed by RM134.0m in IPO-funded working capital, and (iii) a growing base of higher-margin recurring maintenance contracts as its installed base expands.
• We assign a fair value of RM1.07 per share for MYDCD, indicating a 91.1% upside from the IPO price of RM0.56. This valuation is based on a PE ratio of 20.5x, pegged to mid-FY28f EPS of 5.23 sen.

Investment highlights

Tier I to Tier IV capabilities. MYDCD’s credentials span enterprise, colocation and hyperscale facilities across Tier I to Tier IV classifications, with higher-tier facilities demanding more complex, redundant MEPF configurations, and has completed integration works with an aggregate project value of RM1.35bn between FY23 and 30 September 2026, comprising new-build data centres as well as upgrades and retrofits of existing facilities. We view this as one of MYDCD’s moats, as data centre owners and main contractors typically prioritise proven delivery on mission-critical facilities.

Higher-margin recurring income through maintenance and parts. Completed MEPF integration projects expand the Group’s installed base, which in turn generates more preventive and corrective maintenance contracts, as well as follow-on upgrade and retrofit works as data centre operators adapt to higher rack densities and AI-driven cooling requirements. With 76 active maintenance contracts as at 30 September 2026, we see this recurring layer as a gradual cushion to the inherently lumpy, project-based integration business. The maintenance and parts segment generated a GP margin of 43.0% in FY26, versus 14.1% from MEPF integration. 

RM1.32bn order book provides solid earnings visibility. MYDCD’s outstanding order book stood at RM1.32bn as at 30 September 2026, comprising RM1.27bn from MEPF integration for data centres and RM53.1m from maintenance contracts, representing 2.0x of FY26 revenue. Of this, RM515.4m will be recognised over the remainder of FY27 and RM782.1m in FY28, with the balance of RM22.1m from maintenance contracts stretching to FY32, providing firm revenue visibility through FY28. Notably, RM822.3m or 62% of the order book stems from three ongoing projects with Binastra Builders Sdn Bhd, a subsidiary of Binastra Corporation Berhad, which has grown from a new customer in 2023 into MYDCD’s anchor client, contributing 85.4% of FY26 revenue. We view this repeat engagement as a strong validation of MYDCD’s execution track record.

IPO proceeds to scale up tender capacity. Of the RM187.6m gross proceeds from the public issue, RM134.0m (71.4%) is earmarked for working capital, funding performance bonds required for larger tenders, as well as payments to subcontractors. As subcontracted costs accounted for 98.6% of FY26 cost of sales, a stronger working capital buffer should allow the Group to bid for more, and larger, data centre packages concurrently without stretching its balance sheet.

Vertiv-backed credentials with licences to bid for mission-critical work. MYDCD is a Vertiv Elite Black Diamond Partner (20M tier) and Best Authorised Service Provider, and also partners Huawei and Riello UPS for power and cooling systems. The Group holds ISO 9001, 14001 and 45001 certifications and EPI’s DCOS-4 data centre operations certification, and is licensed by CIDB and the Energy Commission. We view these credentials as a key qualifier for mission-critical projects, as data centre owners typically shortlist only vendors with established OEM backing and the certifications required for Tier III and Tier IV facilities.