Samaiden Group Bhd is expected to see an upsurge on earnings for a stronger second half of 2024 (2H2024), with some projects reaching a stronger recognition cycle.
Hong Leong Investment Bank (HLIB) Research, in its technical tracker note on today (May 7), said it estimates that the group’s unbilled order book stands at a robust level of RM418 million (2.5 times cover on FY2023 revenue), which should serve as a significant driver to future earnings.
Despite the already strong order book, HLIB expects Samaiden’s engineering, procurement, construction and commissioning (EPCC) order book could further expand on the back of formalising Corporate Green Power Programme (CGPP) contracts.
“The programme could generate RM2.7 billion-RM3.0 billion of construction jobs for the sector. Additionally, the recent announcement of 2GW large-scale solar programme (about RM7 billion) effectively removes the risks of post-CGPP contracts hangover,” it said.
HLIB said the request for proposal documents will be made available in April 2024 and quota winners could be shortlisted in 2025.
“Samaiden is building a base near support region of RM1.28-1.31 with indicators on the mend. A successful breakout above RM1.35 hurdle will spur the price toward RM1.41-1.46-1.50 region. Cut loss at RM1.22,” HLIB added.
