Final Verdict
OCK Group is navigating a transitional period. The annual data shows a business that expanded rapidly, then hit a revenue ceiling and saw profitability erode. However, the latest quarterly data offers a credible turnaround story with sequential margin and earnings improvement. Investors should look for confirmation in the upcoming annual report for FY2026 (ending June 2026) – specifically, whether the Q2/Q3 FY2026 improvements translate into full-year growth and better interest coverage. For now, the trend is cautiously positive but with lingering concerns over debt and minority interests.
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Over the last five fiscal years (FY2021 to FY2025), OCK Group's financial trajectory has revealed a clear two-phase pattern: a robust post-COVID recovery followed by a period of stagnation and margin pressure.
After impressive revenue growth of 26.4% in FY2022 and 17.1% in FY2023, driven by its core telecommunications network services and tower leasing business, the company's top line contracted by 10.0% in FY2024 and a further 0.8% in FY2025 to RM645.1 million. This decline, particularly the sharp drop in FY2024, was primarily attributed to sluggish performance in the Telecommunication Network Services (TNS) segment following the completion of major projects like Malaysia's first 5G network (NW1) and JENDELA Phase 1. The impact on profitability was more pronounced, with net income falling 18.8% year-on-year in FY2025 to RM26.8 million, and net margins compressing to a five-year low of 4.15%. High depreciation and amortization charges (averaging over RM100 million annually), a persistent and elevated interest expense (MYR 34.3 million in FY2025), and significant minority interest deductions (averaging ~30% of net income) have consistently weighed on the bottom line, reflecting the capital-intensive nature of its regional tower business.
However, the latest five quarters (from Q4 FY2025 ending June 2025 to Q3 FY2026 ending March 2026) indicate a strong recovery.
After a low point, the company has posted two consecutive quarters of sequential growth, with Q3 FY2026 revenue reaching RM174.7 million and net profit surging 104.5% year-on-year to RM11.25 million. This turnaround is fueled by a rebound in the TNS segment from new fiberisation and 5G in-building projects, and a surge in contributions from the power solutions and data centre-related activities, pushing gross profit margins to a quarterly high of 29.1% in Q3 FY2026.
Looking forward, OCK is strategically positioned to benefit from several catalysts, including the upcoming JENDELA Phase 2, its collaboration with U Mobile for the second 5G network roll-out (NW2), and the separate ACE Market listing of its energy solutions arm, EI Power Bhd, which is expected to unlock value despite initial earnings dilution. With a growing outstanding order book (RM757 million as of end-April 2026), a massive tender book (RM2.1 billion), and approval for a transfer to Bursa Malaysia's Main Market, OCK appears to be transitioning back into a growth phase from its recent consolidation. While risks remain, including execution challenges and high leverage, the improved operational momentum and new project pipeline suggest a more positive outlook ahead
