KUALA LUMPUR: The recent contract secured by Samaiden Group Bhd's consortium with JS Solar Sdn Bhd has raised the renewable energy solutions provider's job wins for FY24 past expectations.
The RM100mil engineering, procurement, construction and commissioning (EPCC) job for a 50MWac solar power plant in Kulim Hi-Tech Park is the group's second key job win in FY24.
According to Kenanga Research, the group's year-to-date contract wins of RM75.8mil have exceeded its full-year assumption of RM50mil.
The group's outstanding order book, meanwhile, has increased to RM427mil, which will keep it busy for at least the next 18 months.
"We anticipate a gross profit margin of 13%-16% for the job," said Kenanga in a note.
The research firm raised its FY24-25 earnings forecasts by 6% and 2% respectively as it now assumes job wins of RM100mil in FY24, while maintaining its job win assumption of RM22mil for FY25.
"Consequently, we raise our target price by 1% to RM1.46 based on 30x fully-diluted FY25F EPS of 4.9 sen, in line with the average forward PER of peers such as Solarvest (Not Rated) and Sunview (Not Rated).
"Our target price imputes a 5% premium given its 4-star ESG rating as appraised by us," it said.
Kenanga said Samaiden's tender book stands at RM1.2bil, comprising EPCC jobs for LSS4/Corporate Green Power Programme (CGPP) projects (about 40%), rooftop solar for the commercial and industrial segments (about 30%), and stand-alone/off-grid solar power systems (about 30%).
It said Samaiden's long-term growth is well-supported by the National Energy Transition Roadmap (NETR), which sets an ambitious target of RE to make up 70% of total power generation capacity by 2050.
Also, it said businesses in general, driven by commercial reasons such as to save cost and ESG considerations, have voluntarily invested in solar energy generation assets following the recent hikes in electricity tariffs.
