Maybank IBG reiterated its BUY rating on BM Greentech Bhd (BMG) with a sum-of-the-parts target price of RM2.18 after an analyst briefing in which management signalled stronger earnings momentum from FY27E.
Management said BMG is pivoting from rooftop solar (ATAP) toward integrated solar plus battery energy storage systems (BESS) for the commercial & industrial (C&I) market, aiming to offset the longer return-on-investment timelines that have dampened ATAP uptake in 1H CY26. Under the new Tenaga Nasional Berhad tariff structure, higher maximum demand charges increase the value of BESS through peak shaving and load-profile optimisation, Maybank IBG noted. The house expects deliveries of solar + BESS projects to drive sequential earnings improvement from 4QFY26 into FY27E.
BMG has entered strategic partnerships with BESS suppliers to bolster system-integration capabilities and secure improved procurement terms amid growing project volumes, the briefing disclosed.
Water-treatment segment seen as steady growth contributor
Maybank IBG highlighted BMG’s steadily expanding water-treatment business, which serves industrial customers and palm oil mill effluent applications and supports biogas capture. Management also flagged growing traction in alternative water-supply systems for data centres (DCs). BMG recently completed a river-water treatment plant in Johor for a DC worth an estimated RM15–20 million and is engaging additional DC clients for similar solutions.
FiT 2.0 and biomass opportunities
BMG has submitted a bid to develop an 8MW biomass project under the government’s 300MW Feed‑in Tariff (FiT) 2.0 quota for 2026, targeting a project IRR of about 10–12%. Maybank IBG noted that the broader 130MW biomass allocation within FiT 2.0 could generate RM1.3–2.0 billion in EPCC opportunities, positioning BMG to capture incremental contracts in FY28E given its roughly 30% market share in Malaysia’s biomass boiler EPCC sector.
Forecasts unchanged
Maybank IBG said it left its forecasts unchanged following the briefing and maintained the BUY recommendation with a SOTP target price of MYR2.18.
