Latest news with #CGPP
New Straits Times
7 days ago
- Business
- New Straits Times
Analysts stay upbeat on Malaysia's renewable energy outlook
KUALA LUMPUR: Analysts have stayed positive on Malaysia's renewable energy outlook in the second half of this year, underpinned by a strong orderbook, reported Xinhua. Maybank Investment Bank said in its recent report that it retains a positive view on the country's renewable energy sector, underpinned by strong Corporate Green Power Programme (CGPP) execution, stabilising trend on solar panel prices, and upcoming catalysts from large-scale solar 5+ programme (LSS5+) and LSS6 rollouts. Looking ahead, it noted that orderbook visibility in the sector has improved. This will be driven by solar project commissioning, stable engineering, procurement, construction, and commissioning (EPCC) margins and initial progress on battery energy storage system (BESS) investment. The report also noted that the government is progressing toward LSS5+ and LSS6 rollouts, with requests for proposals (RFPs) expected to be released in the second half. Meanwhile, LSS6 is anticipated to open up two gigawatts (GW) of new solar capacity and may incorporate BESS elements as part of grid firming requirements. "CGPP and LSS5 remain critical growth engines, with most awarded projects targeting to complete by FY2026-FY2027," said the research house. Maybank also highlighted that solar panel prices have remained stable at multi-year lows, with the latest quotes below US$0.10 per watt. This is supportive of the project's internal rate of return and is expected to sustain through the second half due to global oversupply, despite higher demand from Southeast Asia, it added. Meanwhile, Kenanga Research highlighted in its recent report that the EPCC contract value for the sector has now surged to 17.4 billion ringgit (US$4.1 billion). While LSS5+ is entering the award phase, the research house noted that Corporate Renewable Energy Supply Scheme (CRESS) is also back in play as the recent tariff hike hits data centres, triggering a surprise jump in EPCC job flow. Hong Leong Investment Bank Research also anticipates an extended growth phase in EPCC orderbooks due to the coming solar EPCC award cycle driven by LSS5, LSS5+ and LSS6. "Domestic orientation reduces the risk of negative earnings revision due to uncertain external developments," the research house said in its recent report.
New Straits Times
11-06-2025
- Business
- New Straits Times
HLIB starts coverage on Southern Cable with positive outlook
KUALA LUMPUR: Hong Leong Investment Bank (HLIB Research) has initiated full coverage on Southern Cable Group Bhd, highlighting the company's solid operational performance over the past two years, growing institutional interest and bright earnings outlook. The firm raised the earnings estimates for Southern Cable for financial years 2025, 2026 and 2027 (FY25/FY26/FY27) by 8.0 per cent, 7.0 per cent and 17 per cent, respectively. It stated that the notable increase in the FY27 sales forecast primarily reflects the anticipated contribution from the company's Lot 21 and Lot 22 production facilities. Concurrently, HLIB Research initiated a "buy" call and a higher target price of RM1.69 per share from RM1.55 previously, based on a multiple of 18 times fully diluted FY25 earnings per share (EPS) of 9.4 sen. The firm said Southern Cable's current order book stands at RM1.32 billion, equivalent to 0.98 times FY24 revenue coverage. This includes RM792 million in long-term contracts with utility companies, with the rest made up of purchase orders. "Demand for cables remains robust, with the expanded 3,000 km per year production capacity now largely taken up, as reflected by the strong 90 per cent utilisation rate in the first quarter of the financial year 2025 (1QFY25). "Supported by a robust RM1.32 billion order book and over RM1 billion in tenders, management expects this buoyant utilisation to persist," the firm said. HLIB Research added that the company expects strong utilisation to continue, backed by its RM1.32 billion order book and over RM1 billion in tenders. For Tenaga Nasional Bhd sales, management anticipates maintaining a similar run rate in the next quarter. This period will also see a key transition from the old 1+1 long-term contract to a new one, expected to support slight margin improvements from better pricing. In the private sector, order enquiries for medium-voltage and high-voltage cables remain strong, driven by demand from data centre and East Coast Rail Link (ECRL) projects. In the solar segment, the group is currently fulfilling projects under the Corporate Green Power Programme (CGPP), with fifth large-scale solar (LSS5)-related demand expected to pick up in the second half of this year. HLIB Research also said that Southern Cable's sales in the United States continue as usual, with no disruptions expected despite the recent announcement of reciprocal tariffs. As one of the customer's top three suppliers, early discussions have indicated that the US customer is prepared to absorb the additional tariffs — reportedly as high as 24 per cent — without impacting Southern Cable's margins. Meanwhile, the remaining 2,000 km a year capacity expansion planned for FY25 will come online by end-FY25, following the installation of new lines. With regards to the new polyvinyl chloride plant, installation is currently underway, with commissioning scheduled for 2HFY25.
The Star
10-06-2025
- Business
- The Star
Sunview basks in the glow of various solar projects
PETALING JAYA: Sunview Group Bhd is well positioned to capitalise on the growing renewable energy sector, driven by robust demand for rooftop solar and the continued rollout of engineering, procurement, construction and commissioning (EPCC) projects under the Corporate Green Power Programme (CGPP). According to MIDF Research, Sunview is among the key beneficiaries of EPCC prospects under the fifth phase of the government's large-scale solar initiative (LSS5), other upcoming large-scale solar schemes, and the long-term renewable energy growth potential from the National Energy Transition Roadmap. 'We expect the LSS5 EPCC projects, which are progressively being awarded, to aid in order book replenishment,' the research house said. It noted that Sunview is aggressively bidding for jobs, with an EPCC tender book of RM4bil. This comprises RM1.7bil of LSS jobs, RM1.3bil in work on the Corporate Renewable Energy Supply Scheme (Cress), RM734mil of rooftop solar projects and RM264mil in CGPP jobs. 'We are optimistic on future replenishment prospects, with sizeable EPCC jobs coming from LSS5 and the upcoming LSS5+ and LSS6, on top of a strong interest in rooftop solar among the commercial, industrial and residential segments,' it added. MIDF Research maintained its 'buy' recommendation on Sunview, with an unchanged target price of 54 sen, based on 20 times forward earnings, which is at a discount to its larger peers. Sunview's earnings visibility remained supported by its strong outstanding order book, which stood at RM374.3mil. MIDF Research noted the company has three CGPP EPCC projects in the bag, with an aggregated contract value of RM248mil. Of these, one contract had reached 70% completion, while the other two were at 10% and 15%, respectively. The research house highlighted that it had previously estimated that up to RM17bil of solar EPCC jobs are available for industry players. It said, as an asset developer, Sunview is equally aggressive, with RM1.8bil worth of tenders for LSS5+, battery energy storage systems and Cress projects. Sunview's overseas expansion plans add another dimension to its growth strategy through the proposed development of two solar plants in Uzbekistan. Last June, the company announced that its wholly owned subsidiary Fabulous Sunview Sdn Bhd would be collaborating with the Energy Ministry of the Republic of Uzbekistan for two solar energy projects in Uzbekistan. The aim of the two projects is to develop large-scale solar photovoltaic plants and battery energy storage systems in two districts in Uzbekistan. Sunview will serve as the investor and asset owner for the projects.
The Star
09-06-2025
- Business
- The Star
LBS achieves pivotal milestone in green financing
LBS group managing director and chief executive officer Datuk Wira Joey Lim Hock Guan (left) and Alliance Bank's group chief executive officer, Kellee Kam (right) at the official document presentation ceremony. LBS Bina Group Bhd has announced that its special purpose vehicle, Suria Hijauan Sdn Bhd has secured a RM88.4mil green financing facility from Alliance Bank Malaysia Bhd to fund the Engineering, Procurement, Construction and Commissioning (EPCC) costs for its maiden 43 MWp solar farm project. The project, which is under the Corporate Green Power Programme (CGPP), is located in Senawang, Negeri Sembilan and is scheduled for completion by the end of 2025. The solar farm is expected to deliver stable, recurring revenue, thus enhancing long-term earnings resilience, underscoring LBS' commitment to sustainable growth. The solar farm project is expected to generate approximately 53,000 MWh of clean energy annually, effectively offsetting about 35,000 tonnes of carbon emissions. Atlantic Blue Sdn Bhd – a subsidiary of Solarvest Holdings Bhd – was appointed as the EPCC contractor under a RM104.0mil contract, leveraging its expertise in delivering large-scale solar projects. LBS group executive chairman Tan Sri Ir Dr Lim Hock San commented that this green financing marks an important milestone for LBS as they diversify into renewable energy. 'Securing this credit facility from a reputable bank like Alliance Bank highlights the strong potential of our renewable energy venture and our capacity to expand our initiatives within this sector. 'This support reflects confidence in our strategic direction and financial strength, while also facilitating the successful execution of this project. 'This initiative not only resonates with our goal of creating a positive environmental impact, it also strategically complements our core property development business by integrating future product offerings with renewable energy solutions. 'In turn, this contributes to Malaysia's national carbon reduction goals, supporting the country's transition towards a low-carbon economy.' Expressing his optimism about the project, Alliance Bank's group chief executive officer, Kellee Kam said, 'At Alliance Bank, we believe financial institutions have a critical role to play in advancing sustainable development. 'We are honoured to partner with LBS, a company whose values and vision closely align with our own. He added, 'Today's announcement is not just the launch of a project – it marks the beginning of a journey and a cause we are proud to be part of.'
New Straits Times
09-06-2025
- Business
- New Straits Times
LBS Bina secures RM88.4mil financing for maiden solar farm project
KUALA LUMPUR: LBS Bina Group Bhd's special purpose vehicle, Suria Hijauan Sdn Bhd, has secured an RM88.4 million green financing facility from Alliance Bank Malaysia Bhd to cover the engineering, procurement, construction and commissioning (EPCC) costs for its maiden 43 MWp solar farm project in Negeri Sembilan. The project, part of the Corporate Green Power Programme (CGPP) and located in Senawang, is slated for completion by the end of 2025. It is expected to generate about 53,000 MWh of clean energy annually, offsetting around 35,000 tonnes of carbon emissions each year. Atlantic Blue Sdn Bhd, a subsidiary of Solarvest Holdings Berhad, was appointed as the EPCC contractor under a RM104 million contract, leveraging its expertise in delivering large-scale solar projects. Tan Sri Dr. Lim Hock San, group executive chairman of LBS, said that this green financing marks an important milestone for LBS as the group diversifies into renewable energy, reinforcing its commitment to sustainability. "Securing this credit facility from a reputable bank like Alliance Bank highlights the strong potential of our renewable energy venture and our capacity to expand our initiatives within this sector. This support reflects confidence in our strategic direction and financial strength, while also facilitating the successful execution of this project," he said. Lim said that this initiative not only resonates with the group's goal of creating a positive environmental impact, but it also strategically complements LBS' core property development business by integrating future product offerings with renewable energy solutions. "In turn, this contributes to Malaysia's national carbon reduction goals, supporting the country's transition towards a low-carbon economy," he said. The solar farm is expected to provide stable, recurring revenue, enhancing LBS' long-term earnings resilience and reinforcing its dedication to sustainable growth. Alliance Bank's group chief executive officer, Kellee Kam, said, "At Alliance Bank, we believe financial institutions have a critical role to play in advancing sustainable development. We are honoured to partner with LBS, a company whose values and vision closely align with our own."
