Leader Universal Holdings Bhd expects to ride on the potential upsurge of cable demand in Sarawak as the Government plans to transform the state into a powerhouse for South-East Asia.

Group managing director Sean H’ng told StarBiz that as Sarawak Energy Bhd planned to develop several big hydroelectric dams to power the energy-intensive industries planned for the Sarawak Corridor of Renewable Energy (Score), Leader would benefit directly from the development.

In an update report, OSK Research said with more positive developments on the power projects in Sarawak, it was getting excited on Leader’s cable business.

The research house said Leader, with its established presence in Sarawak via 35%-owned Universal Cable Sarawak Sdn Bhd (UCS), would potentially be a main beneficiary from the Score development.

UCS is involved in the manufacture of electrical wires and cables. It is also a subcontractor of power and transmission-related works.

“With the introduction of Score, Sarawak is poised to become a new powerhouse of the country as well as the region,” it said. “Plans for more power plants may also suggest sustainable huge demand for high voltage power cables.”

Leader could also benefit from the Bakun power transfer to Peninsular Malaysia, as that would entail Sarawak installing a 600km overhead or underground cable connecting Bakun to Kuching, en route to the peninsula.

OSK has maintained a “buy” call on the stock with a target price of RM1.81.