Maybank Investment Bank Group (Maybank IBG) has maintained a positive outlook on Malaysia’s renewable energy (RE) sector, citing the continued rollout of large-scale solar programmes and the growing importance of battery energy storage system (BESS) integration as key multi-year growth drivers.
In a sector update, Maybank IBG said utility-scale renewable energy projects — including LSS6, CRESS and MyBeST — are expected to remain a core focus, while increasing emphasis on BESS integration is set to emerge as a defining theme in 2026. The research house believes this will create opportunities for RE players to differentiate themselves through technical capability and execution track records.
Maybank IBG projects aggregate core net profit growth of 24.2% in 2026, following an estimated 34.5% growth in 2025, underpinned by earnings visibility from engineering, procurement, construction and commissioning (EPCC) execution for ongoing and upcoming projects such as LSS5, LSS5+, MyBeST and CRESS. The introduction of Solar ATAP is also expected to rejuvenate demand for residential rooftop solar installations.
Sector valuations remain attractive, according to Maybank IBG, with the RE sector trading at a forward 22 times 2026 price-to-earnings ratio, broadly in line with its five-year average. The research house noted that several smaller RE players are trading at valuations one standard deviation below their historical means, offering selective opportunities for investors.
As Malaysia’s solar capacity is projected to account for 14% of the national grid mix by 2030 and 25% by 2035, Maybank IBG expects demand for BESS to rise to manage the intermittency of solar photovoltaic generation. New RE programmes and ongoing grid infrastructure upgrades are accelerating BESS adoption, allowing RE players to build differentiated capabilities in BESS design and integration amid a limited pool of proven utility-scale specialists.
Companies with growing exposure to BESS include Solarvest Holdings Bhd, Pekat Group Bhd, BM Greentech Bhd, as well as smaller players such as Samaiden Group Bhd and Northern Solar.
Maybank IBG reiterated Solarvest as its top sector pick, citing the company’s dominant 30% market share in utility-scale solar projects and its strong positioning to secure upcoming utility-scale BESS projects. Alongside the sector report, the research house initiated coverage on Pekat with a BUY rating and a target price of RM1.98, highlighting its exposure to renewable energy, grid infrastructure upgrades and the continued expansion of data centre developments.
The research house also maintained a BUY recommendation on BM Greentech, noting that the company stands to benefit from the introduction of Solar ATAP and a potential recovery in residential rooftop solar demand.
