**OCK Group's Profit Growth Could Reach 65%: PhillipCapital**  
**Target Price: 85 Sen**  

**Latest Developments**  
U Mobile Sdn Bhd has been appointed as Malaysia’s second 5G network operator, with plans to deploy up to 3,000 sites. This initiative is expected to benefit telecom service provider OCK Group (OCK, 0172, Main Board Telecom and Media).  

Experts suggest that the addition of these sites will increase Malaysia’s lease rate from the previous 1.5 times to 1.6 to 1.7 times. OCK Group's managed services are expected to greatly benefit from this, with the company likely to gain 2,000 new managed sites.  

Currently, OCK Group has RM587 million worth of telecom network services (TNS) orders, with a bidding value of RM102 million. Additionally, the group recently received a Universal Service Provision (USP) project from the Malaysian Communications and Multimedia Commission (MCMC), with the first phase aimed at replacing Wi-Fi systems at public universities. The group is also actively participating in MCMC’s other project to build telecom infrastructure for military camps, with a potential contract value of RM80 million.  

As renewable energy becomes a major trend, OCK Group has invested RM350 million in large-scale solar photovoltaic (LSSPV) power plants in Malaysia, further expanding its renewable energy portfolio, which currently contributes 5% to the group’s revenue. The group is also actively involved in the Corporate Renewable Energy Supply Scheme (CRESS) and aims to achieve a capacity of approximately 200 MW over the next 5 years, providing support for data center operations via third-party energy access.  

With the growth of TNS services, we expect OCK Group's profit to increase by 65% by 2025. Therefore, we maintain our "Buy" rating and target price of 85 sen.  

**OCK Group Stock Price Movement**  
November 2024 - January 2025  
- Closing Price: 41 Sen  
- Change: -1.5 Sen  
- Highest: 42.5 Sen  
- Lowest: 41 Sen  
- Volume: 3.07 million shares  
- 52-week high: 69 Sen  
- 52-week low: 41 Sen  

**OCK Group Financial Forecast**  
**Fiscal Year Ending December**  
| Year       | 2024       | 2025       | 2026       |
|------------|------------|------------|------------|
| Revenue (RM) | 696.2 million | 823.9 million | 877.3 million |
| Net Profit (RM) | 35.2 million | 58 million   | 68.4 million |
| EPS (Sen)     | 3.3        | 5.5        | 6.5        |
| P/E Ratio     | 12.8       | 7.8        | 6.6        |
| Dividend Yield (%) | 3.5%      | 4.2%       | 4.7%       |

Source: PhillipCapital 03/02/2025