Latest news with #Solarvest
The Star
15-07-2025
- 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
04-07-2025
- Business
- The Star
EPCC players set to benefit as solar panel prices hit lowest point in 2025
KUALA LUMPUR: Engineering, procurement, construction and commissioning (EPCC) players are poised to benefit the most in 2025, as solar panel prices are projected to hit their lowest point this year, said Kenanga Investment Bank Bhd (Kenanga Research). In a note today, it said the total EPCC contract value has surged to RM17.4 billion from RM12.4 billion, ensuring sustained sector activity until the end of 2028. "Thus far, we have already seen RM2.9 billion in contract awards announced by listed firms. "In this space, we see market leader Solarvest Holdings Bhd as a key beneficiary and expect it to grab at least 30 per cent of the EPCC market share,' it said. Kenanga Research expects a pick-up in contract flows over the medium term with the corporate renewable energy supply scheme (CRESS) back on the table and upside from the new tariff. Its top pick is Solarvest because it is better positioned to benefit from the solar EPCC momentum, while maintaining its position in Pekat Group Bhd (Pekat). It said Solarvest has a strong market position, execution track record, clientele, and value proposition of its photovoltaic system financing programme. It also has strong earnings visibility backed by sizeable outstanding order and tender books, as well as recurring income from a growing portfolio of solar assets. Meanwhile, 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 one of the top four medium voltage switchgear suppliers to Tenaga Nasional Bhd , EPE Switchgear (M) Sdn Bhd is set to ride on TNB's massive Regulatory Period 4 capex, with further upside from leveraging PEKAT's network to capture a larger slice of private sector deals such as data centres. Kenanga Research maintains its "Overweight' rating on the sector. - Bernama
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.
Borneo Post
19-06-2025
- Business
- Borneo Post
Solarvest secures Brunei's largest solar project, boosting order book to RM1.3 billion
Construction is expected to begin in the third quarter this year with completion targeted by the end of 2026. –Malay Mail photo KUCHING (June 19): Solarvest Holdings Berhad has secured Brunei's largest 30 megawatt (MW) solar photovoltaic (PV) power plant project, a move analysts say will strengthen its earnings visibility and boost its outstanding order book. The team with Kenanga Investment Bank Bhd (Kenanga Research) said the contract, worth RM100, will lift the group's year-to-date (YTD) job wins to RM604 million, on track to to hit its target of RM1.2 billion in financial year 2026 (FY26). The house also expects the project to deliver gross profit margin between 13 to 15 per cent, contributing to a total order book of RM1.3 billion. On June 16, the group said the project will be undertaken through Seri Suria Power (B) Sdn Bhd, a joint venture Solarvest's wholly-owned subsidiary Atlantic Blue (34 per cent), Serikandi Oilfield Services (36 per cent), and Khazanah Satu (30 per cent). The JV also signed a 25-year power purchase agreement (PPA) with Brunei's Department of Electrical Services (DES), under the Prime Minister's Office to develop and operate a 30MWac solar Kampong Belimbing, Kota Batu. Construction is expected to begin in the third quarter this year with completion targeted by the end of 2026. The engineering, procurement, construction and commissioning (EPCC) work will be handled by Serikandi Solarvest, a separate JV between Solarvest Borneo (49 per cent) and Serikandi Holdings (51 per cent). 'This contract adds positively to Solarvest's job wins, bringing its YTD tally to RM604 million. It also lifts the group's total order book to RM1.3 billion, comprising 81 per cent large-scale solar (LSS) and 19 per cent commercial and industrial (C&I) projects. 'This will keep the group busy for at least over the next 18 months,' Kenanga Research said. The house added that the project is expected to yield a higher tariff of 18 to 20 sen per kilowatt-hour (kWh) compared to the 13 to 16 sen per kWh rate under Malaysia's LSS5 programme. Based on current panel prices, the internal rate of return (IRR) is estimated at around 10 per cent. RHB Investment Bank in a separate note said management expects the project's IRR to be in line with Malaysia-based projects, ranging from high single digits to low teens. The total capital expenditure is estimated at BND35 million, structured with a 70:30 debt-to-equity ratio. Based on Solarvest's 34 per cent stake, the project is expected to contribute RM2 to RM3 million in earnings per year. Excluding project financing, the group's net gearing is projected to rise to approximately 0.21 times. brunei corporate news solar energy Solarvest
New Straits Times
17-06-2025
- Business
- New Straits Times
Solarvest's Brunei project could generate RM100mil via JV, says HLIB
KUALA LUMPUR: The solar project secured by Solarvest Holdings Bhd in Brunei is expected to deliver up to RM100 million in value to its 49 per cent-owned joint venture, according to Hong Leong Investment Bank (HLIB Research). Solarvest secured a 25-year power purchase agreement (PPA) through its 34 per cent-owned joint venture (JV), Seri Suria Power (B) Sdn Bhd. The agreement, inked with Brunei's Department of Electrical Services, will see the JV build, own and operate a 30 MWac ground-mounted photovoltaic (PV) plant atop a remediated landfill in Kampong Belimbing, Kota Batu. Commercial operations are expected to begin by the end of the calendar year 2026, with construction scheduled to start in the third quarter of 2025. Seri Suria Power is a partnership between Solarvest and local entities Khazanah Satu Sdn Bhd — a Bruneian government investment arm under the Finance Ministry — and Serikandi Oilfield Services Sdn Bhd, an energy and infrastructure service provider. HLIB Research said in a note the engineering, procurement, construction, and commissioning (EPCC) scope is expected to deliver between RM80 million and RM100 million in value to Solarvest's 49 per cent-owned EPCC JV, expanding its existing RM1.2 billion order book. "Capital expenditure for the plant is projected at B$35 million (about RM116 million) and should have minimal balance sheet impact considering equity funding required from Solarvest amounts between RM7 million and RM10 million. "Meanwhile, our preliminary project internal rate of return estimation could come in the 'high single digit' range – a reasonable figure, in our view," the firm said. HLIB Research added Solarvest's management aims to grow its order book beyond RM2 billion in the financial year ending March 2026 (FY26), supported by domestic clean energy initiatives such as LSS5, MyBeST, LSS6 and the CRESS programme. The group's tender pipeline remains robust at 5.86 gigawatt-peak (GWp), with battery energy storage systems (BESS) also emerging as a key growth area. HLIB Research maintains a "Buy" rating on Solarvest with an unchanged target price of RM2.25, based on a sum-of-parts valuation comprising a 25 times price-to-earnings multiple for its EPCC business and discounted cash flow for its recurring income assets. Key risks to the outlook include execution delays, political uncertainties and potential fluctuations in material and labour costs.
