Solarvest Holdings Bhd’s (SLVEST) has demonstrated impressive and consistent earnings growth, with profits rising from RM200,000 in the first quarter of 2022 (1Q’22) to RM6.7 million in the first quarter of 2024 (1Q’24).
SLVEST secured a significant contract from Toyo Tyre Malaysia in late August and, just last week, secured 11 solar PV projects in Vietnam, as reported by Malacca Securities Sdn Bhd.
As of June 23, SLVEST’s orderbook stands at a substantial RM457 million, said the research firm in a statement today (Oct 6).
SLVEST’s stock has experienced a notable flag formation breakout, with the next resistance levels identified at RM1.43 to RM1.48, and a long-term target of RM1.55. The support level is currently situated around RM1.28 to RM1.30, with a suggested cut-loss point at RM1.26.
Over the past nine quarters, SLVEST has consistently delivered strong earnings growth, culminating in a robust RM6.7 million in 1Q’24, up from RM200,000 in 1Q’22.
SLVEST’s recent contract wins include a 14MWp rooftop solar PV system installation for Toyo Tyre Malaysia and the acquisition of 11 solar PV projects totaling 12.8MWp in Vietnam.
With the Malaysian government’s ambitious plan to increase renewable energy capacity to 70% of the country’s total energy mix (up from 40%), SLVEST is well-positioned to capitalize on this shift towards sustainability and the country’s aspiration to achieve carbon neutrality by 2050.
SLVEST’s robust orderbook, valued at RM457 million as of June 23, is expected to sustain the company for another 1.5 years.
SLVEST’s technical indicators, including an relative strength index (RSI) above 50 and a moving average convergence/divergence (MACD) Indicator above zero, indicate improving momentum and investor sentiment.
In conclusion, SLVEST’s consistent earnings growth, recent project wins, and alignment with Malaysia’s renewable energy goals make it an attractive prospect for investors.
The stock’s technical breakout further underscores its potential for future gains, said the research house.
