Solarvest Holdings Bhd (SLVEST) has bagged a RM40.4m rooftop solar EPCC job from Scientex on eight sites with a combined capacity of 21MWp.
Kenanga Investment Bank said today (May 10) that this was SLVEST’s first key job win in FY25, boosting its outstanding order book to RM282.4m. Kenanga maintains their forecasts, TP of RM1.91 and OUTPERFORM call on SLVEST.
SLVEST has been awarded a RM40.4m EPCC job for a rooftop solar installation on eight sites with a combined capacity of approximately 21MWp under the self-consumption (SELCO) and net energy metering (NEM) schemes. The project is expected to be completed within 6-9 months.
Kenanga said it is positive on the latest contract win, its first in FY25 (vs. full year assumption of RM654m), boosting its outstanding order book to RM282.4m and anticipate a gross profit margin of 14%-17% from this job.
The house said it believes Corporate Green Power Programme (CGPP) contracts, with a completion deadline by end-2025, will dominate the PV system EPCC job flow in coming months.
In addition, PV system EPCC jobs will also be buoyed by an additional quota of 400MW (residential: 100MW; commercial: 300MW) from Feb to Dec 2024 under the Net Energy Metering (NEM) initiative.
Also, under the Solar For Rakyat Incentive Scheme (solaRIS) (using the additional 100W NEM quota for the residential segment), participants will be offered rebates ranging from RM1,000/kWac up to RM4,000/kWac.
Furthermore, businesses, driven by commercial reasons (i.e. to save cost) and ESG considerations, have voluntarily invested in solar energy generation assets following the recent hikes in electricity tariffs.
Kenanga said it likes SLVEST for: (i) the bright outlook of the RE market in Malaysia, underpinned by the government’s strong commitment towards RE, the export potential of RE and improved commercial viability of solar power projects on falling solar panel prices, (ii) its strong market position, execution track record, clientele and value proposition of its PV system financing programme, and (iii) its strong earnings visibility backed by a sizeable outstanding order and tender books, and recurring incomes from a growing portfolio of solar assets.
