Kuala lumpur: UUE Holdings Bhd shares rose in early trade today, buoyed by positive market sentiment. At 10.42 am, UUE shares gained 1.0 sen to 79.5 sen, with 98,300 shares traded.

According to BERNAMA News Agency, in a research note today, Public Investment Bank Bhd stated that the underground utilities engineering solutions provider is well-positioned to capitalise on the rollout of Tenaga Nasional Bhd’s regulatory period 4 (RP4) and Singapore’s energy infrastructure upgrades. The investment bank highlighted that this is supported by an all-time high order book of RM421.7 million as of the end of June 2025 and strong alignment with national grid enhancement programmes.

The report noted UUE has shown robust topline and earnings momentum, with revenue and profit after tax and minority interests recording a five-year compound annual growth rate (CAGR) of 34.6 per cent and 32.9 per cent, respectively, from 2021 to 2025. Public Investment Bank expects UUE to achieve a 24.3 per cent three-year CAGR for the 2026-2028 period, primarily driven by favourable industry conditions, with the new factory expansion and subsea horizontal directional drilling initiatives enhancing UUE’s ability to capture broader and higher value opportunities.

Despite these catalysts, the bank noted that valuation remains undemanding at 13.1 times of 2026 forecast earnings per share, while the group maintains a low net gearing of 0.05 times. Public Investment Bank initiated coverage with an ‘outperform’ call, setting a target price of RM1.00 per share, citing strong fundamentals and a clear growth trajectory through exposure to long-term grid and utility upgrade cycles.