Latest news with #LSS5
Borneo Post
2 days ago
- 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
Focus Malaysia
4 days ago
- 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
10-06-2025
- Business
- The Star
Solarvest continues to make hay as the sun shines
The company's unbilled order book quintupled from RM242mil in the fourth quarter of FY24 to RM1.2bil in 4Q25. PETALING JAYA: Solar energy company Solarvest Holdings Bhd is poised to scale new heights as the group's stellar results for its financial year 2025 ended March 31, (FY25) sets the stage for a stronger FY26, underpinned by a five-fold jump to RM1.2bil in unbilled orders, analysts say. Hong Leong Investment Bank Research (HLIB Research) said: 'We expect another record year for Solarvest going into FY26, backed by strong order book growth and commissioning of assets towards the later part of FY26.' The company's unbilled order book quintupled from RM242mil in the fourth quarter of FY24 (4Q24) to RM1.2bil in 4Q25. 'We believe execution of Corporate Green Power Programme contracts should kick into higher gear in FY26,' the research house added HLIB Research also anticipated the commencement of projects under the fifth phase of the government's Large Scale Solar (LSS5) initiative could lift Solarvest's engineering, procurement, construction and commissioning revenue towards 2H26. Solarvest's management is guiding for further contract wins from LSS5 in the near term, the research house noted. According to HLIB Research, Solarvest has consistently maintained a minimum 30% market share in past phases of the LSS initiative. Separately, LSS6 bidding is set to commence in the second and third quarters of this year, and the research house thinks the available quotas will be sizeable, ranging between two gigawatt and four gigawatt. 'As such we reckon that Solarvest management's guidance of surpassing RM2bil in unbilled orders in FY26 is conservative, looking at the existing pipeline and its stellar track record,' said HLIB Research. The research house maintained a 'buy' call on the stock with a target price of RM2.25 per share.
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
Samaiden eyes bigger share of solar projects
PETALING JAYA: Samaiden Group Bhd is targeting an ambitious RM1bil order book within the next six to 18 months, analysts say. In a post-results briefing last week, the group's management told analysts it was actively bidding for jobs to bring its a tender book to RM1.8bil. MIDF Research said the group's order book stood at RM441.8m as of March 2024, 53% of which was for utility-scale solar projects. 'Including the three recent engineering, procurement, construction, and commissioning (EPCC) contracts for large solar projects that it secured recently and a two-month order book burn, we estimate that the current outstanding amount should be about RM650mil,' MIDF Research said.. Samaiden was recently awarded two EPCC contracts under the fifth phase of the government's Large Scale Solar (LSS5) initiative – a RM100.7mil contract for a 27.60MW solar farm in Pasir Mas, Kelantan, and a RM45mil contract for a 9.99MW solar farm in Kulim, Kedah. It also won a RM108.6mil contract for a 29.99MW solar farm in Bestari Jaya, Selangor, which was the final LSS4 project It is currently bidding for projects under the upcoming LSS5+ and LSS6 rounds, with the LSS5+ results expected by the end of this month. According to the research house, Samaiden is exploring growth through rooftop solar installations, especially under the recently introduced Community Renewable Energy Aggregation Mechanism or CREAM. The initiative allows residential rooftops to be leased for solar generation. With a potential electricity tariff hike in July, Samaiden anticipates increased demand from commercial and industrial customers for rooftop solutions. MIDF Research said Samaiden is on strong footing. 'Samaiden has a net cash position at RM104.8mil, which provides a strong runway for the group to participate in potential solar photovoltaic investments with favourable recurring income' it added. While EPCC still dominates its revenue, Samaiden aims to grow recurring income via power-generation assets, which command higher margins. 'Samaiden sees prospects of margin improvement going forward as the group's power-generation assets, which entail much higher margins than its typical EPCC business, kick in within the next few years,' TA Research said. TA Research maintained a 'buy' call with a target price of RM1.38 on Samaiden, highlighting its strong order book, net cash status, and project pipeline. MIDF Research also reiterated a 'buy' rating with a higher target price of RM1.59, reflecting optimism in the group's long-term growth driven by LSS and CGPP developments. Samaiden stands out as a prime beneficiary of Malaysia's energy transition. With strong order flows, earnings visibility, and growing recurring income from its renewable energy assets, the group is well-positioned to deliver value in the coming years.
