Solarvest registers 126% increase in revenue for FY2020

Solarvest Energy Sdn Bhd engineers inspecting solar panels at the company office in Butterworth, Penang.Star pix by ASRI ABDUL GHANI / The Star / April 11, 2017.

Solar photovoltaic system specialist, Solarvest Holdings Berhad saw its revenue grow by 126 percent (YoY) to RM 253.4 million for FY2020. The Group also announced in its 4Q FY20 and full year financial results for the period March 31, that its turnkey engineering, procurement, construction and commissioning (EPCC) segment contributed the bulk of the Group’s revenue in FY2020, representing 97 percent or RM 246.5 million of total revenue.

62 percent out of it was contributed by the Large Scale Solar Photovoltaic (LSSPV) segment while the remaining 38 percent is from the Residential, Commercial and Industrial segments.

The Group’s FY2020 profit before taxation (PBT) after adjusting for one-off listing expenses totaling RM 1.9 million would be RM 18.4 million, as compared to RM 16.5 million as recorded.

Moreover, the Group also registered a profit attributable of RM 15.7 million in FY2020, which was an increase of 41 percent YoY or RM 4.6 million from RM 11.1 million last year.

In 4QFY20, the Group registered a revenue of RM51.4 million and net profit of RM3.8 million.

“Moving into a new fiscal year, we continue to make strides despite the near-term challenges brought by the global Covid-19 pandemic. One of the notable developments would be our successful foray into the Philippines. We have clinched two rooftop projects from Vivant Corporation, the parent company of the Philippines’ second largest power distribution utility company and are in talks for more potential solar projects there. Meanwhile, we are making encouraging progress in Taiwan and we aim to penetrate into this new market by second half of this year,” says group chief executive officer of Solarvest, Davis Chong Chun Shiong.

In Malaysia, Solarvest has been working on tenders for the commercial and industrial segment as well as the LSSPV segment.

“The recent roll out of the Renewable Energy Investment (LSS@MenTARI) programme, which offers approximately 1,000 megawatts (MW) of solar quota for open tender, further enhances the prospects of the domestic solar industry,” he added.

The LSS@MenTARI programme is offered to only fully owned local companies or those with at least 75 percent local shareholding for companies listed on Bursa Malaysia. The quota offered is the largest to date under the LSS programme and is expected to generate about RM4 billion worth of investment.

The Group’s outstanding order book stood at RM178.4 million, with majority of it from the Commercial and Industrial segment. The outstanding orderbook is expected to contribute progressively to the Group’s revenue in the financial year ending March 31, 2021.

On balance sheet strength, the Group remains in net cash position of RM45.7 million, with total gross cash in hand of RM61.0 million, exceeding total borrowings of RM15.3 million as at 31 March 2020. Gearing ratio was at 0.2 times

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