The market capitalisations of these Malaysian stocks have compounded nearly three times from 2024 to late-2025, and many MEP-linked stocks have already more than doubled, according to analysts Samuel Tan, Nigel Ng, Yen Voo, Sumedh Samant, Bill C Lin, Alan Hon, Stephen Tsui, Ranjan Sharma and Gokul Hariharan.
While JP Morgan did not share specific stock picks, Bursa-listed companies involved in ventilation, air conditioning, cooling, power distribution, networking and security include KJTS Group, whose shares are up nearly 60% year to date (ytd); MN Holdings (+38% ytd); CBH Engineering (+24% ytd); Powerwell (+12% ytd); and Jati Tinggi Group (+27% ytd).
That said, the analysts still see MEP as an “underappreciated second-layer beneficiary” of the data centre boom, with “meaningful upside ahead”.
According to JP Morgan, local players dominate the electrical sub-segment. Local MEP players are “most competitive” in electrical works and equipment supply — “by far the largest and most technical portion of the scope”, they note. “This has attracted newly listed companies positioning for engineering, procurement, construction and commissioning (EPCC) and equipment-supply opportunities.”
Mechanical tenders, however, are typically awarded to regional specialists given the complexity and reliability standards for data centre cooling systems. Meanwhile, plumbing tenders are often executed in-house by the main contractors, note JP Morgan analysts.
‘Significant’ pipeline
While Malaysia's national utility firm Tenaga Nasional Bhd (TNB) cites 3.5 gigawatts (GW) of data centre projects as “completed”, JP Morgan believes this largely reflects grid-level readiness rather than full data-hall energisation — a crucial step in commissioning new data centres.
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This aligns with today’s “low utilisation” of 0.6GW, implying a 17% user time to revenue (UTR) rate, and JP Morgan’s internal tracking of only 0.5GW of truly live capacity.
“The wide gap between grid readiness and actual load-up underscores the significant pipeline of MEP works still underway,” says JP Morgan. “As the 3.5GW of grid-ready capacity gradually converts into fully energised halls, we expect sustained job flow and steady revenue recognition for MEP contractors over the next 12-18 months.”
Using RM15 million ($4.72 million) per megawatt for MEP, JP Morgan estimates a RM43 billion addressable market over five years.
As hyperscalers scale up Southeast Asia deployments, regional electrical original equipment manufacturers (OEMs) are moving up the value chain into full MEP integration, say JP Morgan analysts.
This raises the competitive bar for Malaysian players, where margins for smaller firms may compress, they add.
“All-in, established EPCC-capable players may be better positioned than newer entrants without a track record that may face a steeper uphill, potentially driving M&A and industry consolidation,” they write.
