Solarvest Holdings Berhad’s (Solarvest) net profit rose by 43.2% YoY to RM7.2 million in the second quarter for the period ended 30 September 2023 (2QFY24) from RM5 million previously, marking its strongest quarterly performance to date.
The group also announced its six months financial results for the financial year (1HFY24) today (Nov 29).
In a statement, Solarvest said the net profit is the back of revenue of RM139.9 million, representing a 42.5% year-on-year (YoY) growth from the RM98.2 million attained in the same quarter last year (2QFY23).
“The increase in revenue was mainly driven by the higher construction progress of large-scale solar 4 (LSS4) projects.
“As a result, revenue contribution from the engineering, procurement, construction, and commissioning (EPCC) of the solar energy solution segment rose by 41.9% YoY to RM136.3 million in 2QFY24,” it said.
Solarvest said EPCC segment remained the main contributor, accounting for 97.4% of revenue, and the group has successfully commissioned one if its self-owned LSS4 plants.
“This led sale of electricity in 2QFY24 to increase more than four-fold to RM1.8 million from RM0.4 million earlier. Operations and maintenance (O&M) of solar systems and other activities contributed the remaining 1.3% or RM1.9 million,” it added.
Meanwhile, in HFY24, Solarvest achieved its best-ever first-half performance with record revenue and net profit, with net profit improved by 49.4% YoY to RM13.9 million as revenue jumped by 87.8% YoY to RM283.3 million.
Its executive director and group chief executive officer Davis Chong Chun Shiong said amidst the prevailing macroeconomic uncertainties, it are incredibly pleased to be able to maintain its growth momentum with a consecutive record-setting quarterly performance.
“Our newly commissioned 29.6 megawatt-peak (“MWp”) LSS4 plant has successfully commenced operations, securing long-term recurring earnings from electricity sales over the next 25 years.
“Meanwhile, the remaining two LSS4 plants with a total installed capacity of 37.7 MWp are on track for commissioning by the end of 2023,” it said.
Within the EPCC segment, the group unbilled book order currently stands at RM289 million, including RM75 million from LSS4 projects.
“After the successful completion of our remaining LSS4 EPCC projects, we aim to further expand our order book by leveraging on the opportunities arising from the 800 MW quota under Corporate Green Power Programme (CGPP).
“We are actively pursuing potential EPCC project opportunities of around 443.4 MWp under the CGPP to replenish our Group’s order book in 4QFY2024,” said Chong.
He added the group has obtained a cumulative capacity of approximately 110.0 MWp through Powervest, which with roughly 80% of the capacity secured under multiple corporate power purchase agreements (PPAs), will be able to contribute up to RM39 million annual recurrent revenue.
Meanwhile, Chong said its overseas expansion efforts have started to come to fruition with projects secured abroad amounting to 23.5 MWp.
The group is also actively tendering for a combined total of 3.1 gigawatt-peak (GWp) in projects, with 1.6 GWp located in Malaysia and 1.5 GWp overseas.
“Moving forward, Solarvest remains committed to expanding its engagement across the clean energy value chain by venturing into other renewable energy sources and new sustainable solutions. In FY2025, Solarvest is ambitious to foster significant growth in its tender book with promising opportunities,” he added.
