In a showing of how the solar panels market has grown in such short period of time, Solarvest one of the early players in clean energy, has successfully transferred from the ACE market to join the big boys in Main Market.
Cheering the succession, GCEO Davis Chong remarked “We are immensely thrilled to successfully migrate to Bursa Malaysia’s Main Market. This marks a significant milestone not only for Solarvest but also for the renewable energy (RE) industry in Malaysia. It will pave the way for us to expand the visibility of the Group and gives us the platform to share the robust growth potential of the domestic solar industry to a wider pool of investors; locally and abroad.”
As a Main Market company, Solarvest are hopes to attract more institutional funds who do not have the mandate to invest in ACE Market companies. This gives the company more option to raise funds in the future to fuel its expansion, incidentally this comes at a time with ASEAN looking set to become one of the fastest-growing regions having set an ambitious target of 23% RE by 2025.
This will be also bode well with the company’s plans to transforming its business model to expand beyond engineering, procurement, construction and commissioning (EPCC) works and to improve on increasing recurring income via asset ownership. Moreover, there is also the desire to diversify into related businesses in the clean energy exploring areas likes green technology-related services and battery storages businesses.
Solarvest’s aggregate profit after tax for the past three financial years amounted to RM43.5 million, with a PAT of RM16.4 million for the latest financial year ended 31 March 2021. Accordingly, the Group has exceeded the profit requirements for the transfer, which requires the Group to have an aggregate PAT of at least RM20 million for the past three full financial years, as well as a PAT of at least RM6 million for the most recent financial year.
It’s balance sheet amounts to RM92.2 million as at 31 March 2021 and has consistently generated positive net cash flow from operating activities since its listing in 2019.