RHB Research and HLIB maintained their BUY calls on Solarvest Holdings Bhd, with target prices of RM3.64 and RM3.59 respectively, saying the renewable energy player is positioned for stronger earnings as large-scale solar projects gain momentum.
RHB said Solarvest’s 1QFY27 core earnings rose 4.6% year-on-year to RM17.9 million and were within expectations, although below consensus. HLIB similarly viewed the results as broadly within expectations, with core profit rising 16.2% year-on-year to RM19.7 million.
The softer quarter reflected the early execution stage of utility-scale solar projects, but analysts expect recognition to accelerate in the coming quarters as LSS5, LSS5+ and Corporate Green Power Programme projects progress.
Solarvest entered FY27 with an outstanding order book of around RM2.4 billion, 92% of which comprised utility-scale projects. HLIB said management is targeting the conversion of around 45% to 50% of the orderbook into FY27 revenue, while RHB expects further contract wins from LSS6, battery energy storage systems, and the Corporate Renewable Energy Supply Scheme.
RHB said LSS6 could be a major growth catalyst, with total project capex estimated at RM13 billion to RM15 billion including BESS. Based on a potential 20% to 30% market share, Solarvest could secure RM2.6 billion to RM4.5 billion in contracts.
HLIB also expects LSS6 to support earnings growth into FY29, with its forecast pointing to core profit of RM245.9 million for that year.
As of 10.42 am, the stock price gained nearly 1% to RM3.06.
