{
  "id": 1474744,
  "title": "HE Group's net profit surged amid higher progress on data centre project",
  "url": "https://urgent.news/2026/08/17/he-groups-net-profit-surged-amid-higher-progress-on-data-centre",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-17T11:00:12.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1513212/he-groups-net-profit-surged-amid-higher-progress-data-centre"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: The net profit of electrical engineering services provider HE Group Bhd skyrocketed by 61% in the second quarter of the 2026 financial year, fueled by heightened project progress on ongoing contracts, particularly its data centre initiatives. The company's Q2 net profit soared to RM5.1 million, up from RM3.16 million in the same period last year. Revenue expanded by 44% to RM46 million from RM32 million in the previous quarter.\n\nManaging Director Haw Chee Seng attributed this significant growth to the discipline and precision his team applies to every project. In the first half of FY26, the company's net profit grew by 26.7% to RM7.67 million, while revenue climbed by 13.8% to RM72.4 million. Despite the volatile global economic landscape, HE Group remains optimistic about its performance in FY26, driven by a strong order book and continued investments in data centers, semiconductors, and electrical and electronics (E&E) sectors.\n\nHaw emphasized that the company's strategy involves being highly selective in the projects it undertakes, allowing them to allocate their resources to areas that can generate the most significant impact and long-term value for stakeholders. The expansion of data centers, alongside the continued growth of semiconductor and E&E sectors, is expected to sustain demand for specialized electrical engineering services. Malaysia's data center capacity is projected to more than double to about 2,055 megawatt (MW) by the end of 2026, with another 3,500MW in development.\n\nAs of August 17, HE Group's order book stood at approximately RM292 million, including a substantial subcontract worth around RM102 million on June 22 for its largest data-center project to date in Johor. The company has also secured an additional RM47 million worth of supply and installation for a 275kV electrical worker on another data center project in Johor. HE Group has further broadened its footprint in the semiconductor and power infrastructure space by securing a RM20 million power distribution contract for a manufacturer of advanced NAND flash memory products on May 18.\n\nWith sustained investment flowing into the data center, semiconductor, and E&E sectors, HE Group is well-positioned to maintain this momentum, backed by its track record of technical reliability, operational continuity, and compliance. The company's share price surged 13 sen or 18.12% on Monday, closing at 88 sen each, marking a more than double increase over the last eight months.",
  "summary": "KUALA LUMPUR: HE Group Bhd’s net profit surged 61 per cent in the second quarter of financial year 2026 (Q2 FY26), driven by higher project progress recognised on ongoing contracts, including its data centre projects.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}