KUALA LUMPUR: Jati Tinggi Group Bhd remains confident in its business outlook, citing an outstanding orderbook of about RM1.1 billion despite recent weakness in its share price amid volatility in technology and data centre-related stocks.
The power infrastructure engineering group said there had been no material changes to its business operations or ongoing project execution arising from the recent market volatility.
It attributed the broader market uncertainty partly to concerns over global artificial intelligence (AI) infrastructure investments and financing requirements.
This has weighed on sentiment towards technology and data centre-related companies.
Jati Tinggi shares plunged as much as 29 per cent in early trading today, after more than doubling in value since the start of the year.
The stock opened unchanged at RM1.40 before edging up to RM1.41. By 10am, it had tumbled to RM1.00, approaching the limit-down level of 98 sen.
The sharp decline also triggered a suspension of intraday short selling in the counter.
However, the shares pared their losses to close 7.14 per cent, or 10 sen, lower at RM1.30, giving the group a market capitalisation of RM575.81 million.
Jati Tinggi said its orderbook provides earnings visibility over the next three years, supporting its focus on project delivery and business growth.
The group operates in the power infrastructure engineering sector, undertaking underground cable installation, overhead transmission line construction, substation works and other related electrical infrastructure projects.
Malaysia's power infrastructure sector is expected to benefit from continued investment in grid expansion and modernisation, as well as rising electricity demand from data centres, industrial developments and renewable energy integration.
Tenaga Nasional Bhd (TNB) has allocated RM42.8 billion in capital expenditure under Regulatory Period 4 (RP4), providing a major investment backdrop for the country's electricity supply infrastructure.
The expansion of data centres and other energy-intensive industries is increasing the need for reliable electricity supply, grid capacity and supporting transmission and distribution infrastructure.
The integration of renewable energy sources into the national grid is also creating demand for infrastructure upgrades and related engineering works.
Against this backdrop, Jati Tinggi said it would remain focused on executing existing projects on schedule and strengthening its capabilities to capture opportunities arising from Malaysia's ongoing power infrastructure development.
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