PUC Positions for Malaysia’s Growing BESS Market with H BESS Acquisition

Malaysia’s renewable energy construction sector is expected to enter a new phase of growth, with battery energy storage systems (BESS) becoming increasingly important as the country expands solar generation and works to strengthen grid stability. Malaysia aims to raise renewable energy to 70% of installed generation capacity by 2050, increasing the need for energy storage to manage fluctuations in renewable electricity generation.

The government has already begun establishing a utility-scale BESS market. In November 2024, the Energy Commission launched Malaysia’s first competitive bidding process for utility-scale BESS, offering 400 MW/1,600 MWh across four projects, with each project sized at 100 MW/400 MWh and targeted for commercial operation in 2026.

The development of BESS is also being supported by Malaysia’s rapidly expanding data centre sector. The country has emerged as a major Southeast Asian data centre hub, attracting significant investment as global technology companies expand their digital infrastructure. This growth is increasing demand for reliable, round-the-clock electricity, while critical facilities have traditionally relied on diesel generators to provide backup power.

Against this backdrop, PUC Bhd is seeking to enter Malaysia’s growing BESS market through the proposed RM6.75 million acquisition of H BESS Sdn Bhd. The move would give PUC exposure to an emerging segment of the renewable energy value chain as solar deployment accelerates and electricity demand from data centres and other energy-intensive industries continues to increase.

PUC managing director Cheong Chia Chou said H BESS represents a suitable strategic fit because the acquisition would provide PUC with an existing platform, allowing the company to enter the energy storage sector without having to build its capabilities entirely from the ground up. He also noted that energy storage is increasingly moving from a supporting technology toward a critical component of the wider power system.

H BESS is engaged in the assembly and trading of BESS solutions and has received a non-binding letter of intent for a 4,626 kWh BESS system at a five-star hotel in Kuala Lumpur. The company is also partnering with China-based battery storage manufacturer Hithium Tech HK to establish a BESS assembly line in Malaysia.

If completed, the proposed assembly facility could support local manufacturing capabilities with a targeted annual production capacity of up to 2.0 GWh. The development would provide PUC with the potential to expand its energy storage business through a combination of technology support and locally based production capabilities.

H BESS director Yong Tzen Wae said the company plans to begin by importing and installing battery systems before gradually localising assembly and developing its capabilities in Malaysia. The company also sees the potential to expand into a regional role, as energy storage markets across Southeast Asia increasingly seek greater localisation of battery solutions.

Hithium is identified in the report as one of the major global battery storage manufacturers, while lithium iron phosphate (LFP) technology has gained wider adoption due to its safety, durability and cost competitiveness. The technology is already widely deployed globally and is now expanding further into Southeast Asian markets.

The proposed acquisition would be funded through a private placement of up to 304.8 million new PUC shares, equivalent to 10% of the company’s existing issued share capital. At an indicative issue price of 3.44 sen per share, the placement is expected to raise approximately RM10.49 million. Of the proceeds, RM6.75 million would be used to finance the acquisition, RM3.02 million would be allocated to working capital and RM720,000 would cover related expenses.

The acquisition is expected to provide PUC with a new recurring growth avenue. The deal includes a profit guarantee of RM3.5 million in aggregate audited net profit for financial years 2026 to 2028, which the company said would provide additional earnings support during its expansion phase.