OCK Group Berhad (OCK) is a leading provider of comprehensive end-to-end telco network services in Malaysia, specialising in the ownership and leasing of towers to telco operators. Regionally, OCK is Indonesia’s largest tower-managed service provider and the leading independent tower company in Vietnam.
OCK stands to benefit strongly from 5G deployment in Malaysia, given its solid execution track record in rolling out 3G/4G sites under projects initiated by the Malaysian Communications and Multimedia Commission (MCMC) and Jendela.
Philip Capital, in a note today (June 18) has initiated coverage on OCK with a BUY rating and target price of RM0.85.
With over 5,500 towers spanning Malaysia, Vietnam, and Myanmar, OCK generates steady and long-term recurring revenue, accounting for about 60% of its total group revenue.
Green and digital expansion involving RE, data centre and AI The green energy and power solution business is set to gain stronger traction, driven by strategic initiatives under the National Energy Transition Roadmap (NETR), including the expansion of more solar farms.
OCK is well-positioned to capitalise on the growing data centre opportunities, having secured RM25m orderbook and robust RM50m tender pipeline.
Additionally, OCK’s new digital business prospects are bolstered by its recent collaboration with SenseTime, a leading artificial intelligence (AI) software company, aimed at innovating AI-driven solutions for its customers.
Philip Capital sees OCK as a prime beneficiary of 5G deployment both domestically and regionally, as well as expansion of RE capacity under the NETR.
OCK is trading at an attractive 11x 2025E PE, considering its 3-year profit CAGR of 20% over 2023–26E, driven by a robust recurring regional site-leasing and maintenance business.
