Latest news with #LSS5+
New Straits Times
3 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.
The Star
4 days ago
- Business
- The Star
Solarvest on track for strong FY26
Phillip Research said the company's management remained committed to further growing its order book to surpass RM2bil in FY26. PETALING JAYA: Solarvest Holdings Bhd is poised to chart another record showing for its financial year 2026 ending March 31 (FY26), due to, among other things, its strong engineering, procurement, construction, and commissioning (EPCC) order book. Phillip Research said it expects FY26 to be another record earnings year for the company supported by its robust RM1.2bil outstanding EPCC order book, comprising RM486mil worth of Corporate Green Power Programme projects, RM504mil in the fifth phase of the government's Large-Scale Solar (LSS5) projects, as well as RM252mil in residential, commercial and industrial projects. In a recent meeting, the research house said the company's management remained committed to further growing its order book to surpass RM2bil in FY26, underpinned by replenishment opportunities arising from LSS5, LSS5+ and the rolling out of battery energy storage systems. Solarvest has already secured a 30% share of the total two gigawatt (GW) capacity under LSS5 and is currently in active negotiations to finalise additional EPCC contracts by the third quarter of this financial year (3Q25), which could potentially lift its share to between 40% and 50%, the research house added. 'Looking ahead, the upcoming LSS5+ project is expected to introduce a further two GW of quota into the market, with bid finalisation anticipated by July 25, and EPCC contract awards commencing in 1Q26. 'Backed by a strong track record for execution in the LSS programme and robust bidding advisory capabilities, we anticipate Solarvest to maintain its 30% market share in LSS5+.' This includes the group's newly secured LSS5 projects and its Brunei solar venture, said the research house. 'The group now has a 334 megawatt pipeline of solar assets, targeted to be operational by FY28,' the research house said. Maintaining a 'buy' call on Solarvest with a higher target price of RM3.05, Phillip Research said it continues to like the company for its leading position in the solar-energy sector and for being a key beneficiary of the nation's energy-transition goals. Key downside risks include changes in the government's renewable-energy policy, project execution delays, intense market competition, and volatility in solar module prices.
The Star
23-06-2025
- Business
- The Star
Solar surge ahead for RE developers
PETALING JAYA: Renewable energy (RE) developers who were unsuccessful in the bid for the large-scale solar (LSS) projects in the previous programmes could benefit under LSS5+ where the requirement for bumiputra participation rate is set higher. Kenanga Research sees strong chances for companies like Cypark Resources Bhd , Malakoff Corp Bhd , SD Guthrie Bhd , Sunview Group Bhd , JAKS Resources Bhd and Solarvest Holdings Bhd to secure LSS5+ awards, given their previous unsuccessful bids in LSS5 and their likely continued interest in the programme. 'The higher bumiputra participation this time (versus only 25% in LSS5), should improve the chances for Malakoff, Cypark and SD Guthrie,' the research house noted in a sector report. Kenanga Research believes up for grabs are sizeable allocations of up to 500MW (high versus LSS5 of up to 30MW) and assuming awards mirror the 100MW blocks seen in LSS5, it estimates around 15 awards remain to be won. 'With the current solar panel prices, we expect winning tariffs to land between 14 sen/kWh and 18 sen/kWh, supporting a project internal rate of return (IRR) of roughly 8%,' said the research house. The other big winners of the LSS5+ will be the engineering, procurement, construction and commissioning (EPCC) contractors like Solarvest. Kenanga Research stated that solar EPCC players' order books are hitting all-time highs as they race to deliver Corporate Green Power Programme projects before the end-2025 deadline. At the same time, 4GW worth of LSS5 and LSS5+ contracts are about to hit the market, with completions targeted by end-2027, unlocking at least RM10bil in solar EPCC value, it stated. The research house projected the average price of solar modules to dip slightly as Tier-1 manufacturers flood the market. 'Given the low IRR of about 8% in LSS jobs and rising cost risks, we remain bullish on EPCC contractors over asset owners. 'In this space, we see market leader, Solarvest, stands out as a key beneficiary, expected to grab at least 30% of the EPCC market share,' Kenanga Research stated. Its top sector picks, however, are niche players like Pekat Group Bhd and Swift Energy Bhd, which stand out as profitability-focused RE players and offer cheap proxies to the RE play. RHB Research also favours the EPCC space within the RE sector, expecting the announcement of shortlisted bidders for LSS5+, which will introduce an additional 2GW, to take place in the coming months. The timeline will allow asset owners to further take advantage of the currently low solar panel prices – a trend that is expected to continue through to the end of the year. LSS6 is also anticipated to be launched in the second quarter of 2025, potentially adding another 2 GW of capacity. Both Kenanga Research and RHB Research are 'overweight' on the RE and power utility sectors.
Focus Malaysia
17-06-2025
- Business
- Focus Malaysia
Bullish outlook for EPCC players as RM10bil in solar projects near launch
KENANGA Research (Kenanga) believes many developers who were unsuccessful in the Fifth Large Scale Solar programme (LSS5) will pivot to LSS5+ as an alternative path for project development. Asset owners from previous LSS rounds, with proven track records, are well-positioned to benefit. 'We see strong chances for CYPARK, MALAKOF, SDG, SUNVIEW, JAKS, and SLVEST to secure awards given their previous unsuccessful bids in LSS5 and their likely continued interest in the programme,' said Kenanga. But with a likely higher Bumiputera participation this time, this should improve the chances for the former three, such as MALAKOF, CYPARK and SDG. 'Up for grabs are sizable allocations of up to 500MW, which could strain balance sheets, though this could be surmounted via Bumiputera-led joint ventures in our view,' said Kenanga. Assuming awards mirror the 100MW blocks seen in LSS5, Kenanga estimates around 15 awards remain up for grabs. With the current solar panel prices, Kenanga expects winning tariffs to land between RM0.14 per kWh and RM0.18 per kWh, supporting a project IRR of roughly 8%. Order books are hitting all-time highs as solar EPCC players race to deliver Corporate Green Power Programme (CGPP) projects before the end-2025 deadline. At the same time, 4GW worth of LSS5 and LSS5+ contracts are about to hit the market, with completions targeted by end-2027, unlocking at least RM10 bil in solar EPCC value. Kenanga projects average module prices to dip slightly as Tier-1 manufacturers flood the market. Still, with weaker solar manufacturers exiting, a price rebound is possible, though not likely in 2025. Given the low IRR of ~8% in LSS jobs and rising cost risks, Kenanga remain bullish on EPCC contractors over asset owners. 'In this space, we see market leader SLVEST stands out as a key beneficiary, expected to grab at least 30% of the EPCC market share,' said Kenanga. Kenanga's sector top picks are niche players like PEKAT and SET that stand out as profitability-focused RE players, offering cheap proxies to the RE play. With contract awards expected to accelerate in the coming months and management maintaining a conservative outlook, upside surprises remain on the table. PEKAT stands out for its focus on high-margin residential and commercial rooftop solar projects but the game changer here is its newly acquired switchgear business. As the top four MV switchgear supplier to TNB, EPE is set to ride on TNB's massive RP4 capital expenditure with further upside from leveraging on PEKAT's network to capture a larger slice of private sector deals like DCs. SET, the only certified player in explosion proof solar PV systems in ASEAN, is strategically positioned to ride the region's growing focus on RE within the O&G up-cycle. Regional giants (PTTEP, PTSC, Pertamina) are ramping up aggressively driven by favourable crude oil prices with net-zero commitment by 2050 guaranteeing continued green investments. —June 17, 2025 Main image: AFP Photo
The Star
21-05-2025
- Business
- The Star
Solarvest order book to surpass RM2bil in FY26
Solarvest executive director and group chief executive officer Davis Chong Chun Shiong. PETALING JAYA: Solarvest Holdings Bhd executive director and group CEO Davis Chong Chun Shiong is confident the clean energy expert's order book will cross the RM2bil mark in financial year 2026 (FY26). As he reviewed the final quarter of the group's 2025 financial year, Chong said the feat will be supported by additional fifth large scale solar (LSS5) contracts, anticipated LSS5+ award, as well as active participation in solar battery energy storage systems and upcoming LSS6 tenders in the second quarter of financial year 2025 (2Q25) and 3Q25 of this calendar year. 'In light of the potential rise in Malaysia's electricity tariffs in July, we also foresee improved project feasibility under the Corporate Renewable Energy Supply Scheme. 'This creates compelling opportunities for Solarvest to scale beyond our RM2bil order book target,' he said in a statement. 'The key drivers of our revenue growth include ongoing engineering, procurement, construction, and commissioning projects under the Corporate Green Power Programme and LSS5 programmes. 'Beyond utility scale projects, the commercial and industrial segment is also expected to remain strong, with approximately RM200mil in annual replenishments.' As at March 31, 2025, the group's unbilled order book stood at RM1.24bil. In the fourth quarter of the financial year ended March 31, 2025 (4Q25), Solavest posted a net profit of RM20.53bil, a 165% increase over the net profit of RM7.73mil in the year-ago quarter. The group's revenue rose to RM224.87mil from RM96.9mil in the previous comparative quarter. Earnings per share climbed to 2.82 sen from 1.15 sen previously. Over the 12-month period, Solarvest's net profit rose to RM51.94mil from RM32.63mil in FY24, while revenue increased to RM536.82mil from RM497.03mil in the previous year. In a filing with Bursa Malaysia on its latest results, Solarvest said the outlook for Malaysia's renewable energy (RE) industry remains positive, driven by the government's commitment to increasing RE capacity to 70% of the national energy mix and achieving net-zero emissions by 2050. 'The power sector is projected to raise its RE capacity to 31% by 2025 and 40% by 2035, with solar energy expected to become the dominant RE source.' The company noted that Malaysia's renewable energy landscape continues to gain momentum with a series of new initiatives aimed at expanding solar power and energy storage capacity. 'Following the completion of the LSS5 and LSS5+ bidding rounds, the government has issued the Request for Proposal in May 2025 for the MyBeST programme slated to achieve commercial operation in 2027. 'The programme targets the deployment of 400MWh/1,600MWh of storage capacity across Peninsular Malaysia and opens participation to third-party developers.' Solarvest said this is expected to enhance grid stability and flexibility, supporting Malaysia's transition towards a higher share of renewable energy. 'All these initiatives underline the government's commitment to RE and are expected to benefit local RE developers and engineering, procurement, construction and commissioning players. 'Barring any unforeseen circumstances, the board is of the view that the group's overall performance would remain satisfactory for the coming financial year.'
