KUCHING: Ranhill Utilities Bhd (Ranhill) is expected to benefit from the growth of data centres in Johor and the upcoming economic growth prospects from the Johor-Singapore SEZ and Special Financial Zone, analysts say.

In a report, the research team at MIDF Amanah Investment Bank Bhd (MIDF Research) said: “Ranhill SAJ will continue to contribute strongly to the group’s earnings in the coming quarters due to the domestic water tariff hike, on top of stronger demand from the non-domestic consumers mainly due to the growth of data centres in Johor and the upcoming economic growth prospects from the Johor-Singapore SEZ and Special Financial Zone.

“The group also indicated its interest in participating in the recently announced Corporate Renewable Energy Supply Scheme that will allow RE power producers such as Ranhill to sell electricity through the grid via a third-party access.”

On Ranhill’s recently released 3QFY24 results, the company reported a net profit of RM23.6 million which brought its 9MFY24 bottom line to RM39.1 million, an improvement of 17 per cent y-o-y. This was attributable to higher demand for electricity and lower maintenance cost from the group’s power division.

It said, the group revenue rose 1.7 per cent y-o-y to RM1.75 billion in 9MFY24, attributable to stronger recognition of water revenue by Ranhill SAJ on the back of the domestic water tariff hike in February 2024.

“Meanwhile, the group’s power segment grew 11.1 per cent y-o-y to RM91.0 million during the quarter, mainly from higher demand for energy from Sabah Electricity and higher energy payment fuel of gas and diesel due to a 10-day gas curtailment compared to eight days in the same quarter last year in Ranhill Sabah Energy II Sdn Bhd,” it said.