Solarvest Records 26% Increase In Q3FY2021 Net Profit

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 (“PV”) system specialist, Solarvest Holdings Berhad (“Solarvest” or the “Group”) delivered its highest ever quarterly net profit of RM5.0 million in 3QFY2021, recording an increase of 26 percent year-on-year (“YoY”) as compared to the same quarter last year (“3QFY2020”).

Quarterly revenue stood higher at RM70.2 million, as compared to RM62.1 million in the previous year.

The improved performance was attributed to an increase in revenue from the Residential, Commercial and Industrial (C&I) business segment which was the anchor revenue contributor, representing 94 percent of revenue. This business segment experienced strong growth in 3QFY2021 as revenue contribution increased by 165 percent YoY to RM151.4 million from RM57.2 million last year.

In addition to that, Solarvest bagged approximately RM186.9 million new orders from this segment alone in the nine-month period, translating to an increase of 31 percent from RM143.2 million secured in the same time last year.

For the 9MFY21 period, Solarvest’s revenue stood at RM161.1 million while net profit was at RM9.8 million.

Group Chief Executive Officer of Solarvest, Davis Chong Chun Shiong said, “We expect the growth momentum in the Commercial and Industrial segment to sustain as corporate green power deals grow bigger in size as E.S.G pressure is heightened. Tenders for rooftop solar projects are growing as large as 30MW for a single customer across multiple sites, which has similar capacity of smaller large-scale solar farms.”

“Major energy providers are also diversifying into renewable energy to stay relevant and future proof their business models. These developments accelerate the pace of growth for the industry and we foresee more private large-scale solar farms and larger size rooftop projects coming up. In addition to that, we look forward to onboard more large-scale solar projects from the LSS@Mentari programme which the tender results are expected to be announced by the first week of March.”

The Group’s unbilled orderbook remains robust at RM197.5 million and bulk of the unbilled orders are from the Commercial and Industrial segments. Majority of the projects will be completed within six to twelve months.

“As the domestic industry is rallying to achieve the 20% energy mix target, more than RM30 billion worth of investment is expected to flow into the renewable energy sector to reach the goal. With such market opportunity, it is imperative to have a healthy growth across the ecosystem of the renewable energy industry, from financing to energy generation and consumption,” he said.

Our neighboring countries such as Thailand and Vietnam have been growing at a much faster pace with an established ecosystem as compared to our domestic RE industry. We hope to see the inclusion of renewable energy sector as part of the key focus areas in 12th Malaysia Plan with more stimulus initiatives to drive sustainable growth and to put Malaysia on the map as Southeast Asia’s clean energy and renewable energy industries leader,” he further added.

The Group recently raised a total of RM38.7 million from the issuance and private placement of 32 million new shares at an issue price of RM1.21 per share.

On balance sheet, the Group remains in net cash position of RM64.3 million, with total gross cash in hand of RM80.3 million, exceeding total borrowings of RM16.0 million as at 31 December 2020. Gearing ratio was at 0.1 times.

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