PETALING JAYA: Clean-energy specialist Solarvest Holdings Bhd
is expected to see more job flows that will boost the group’s order book in the near term after recently clinching five Corporate Green Power Agreements (CGPAs) with several corporate parties.
Apex Securities said over the near term, it expects most job flows to come from 800 megawatts (MW) of CGPP. Solarvest is tendering for more than half of this capacity, potentially adding close to RM1bil to its order book, it noted.
The group’s tender book stands at 6.1 gigawatts (GW) (66% in Malaysia, 34% regionally), including the upcoming two GW fifth stage of large-scale solar and an additional 450MW under the net energy metering, which would keep Solarvest busy until 2028. Outstanding order book stood at RM242mil as of March 31 this year.
Following the recent share price retracement, the brokerage said valuations are turning more attractive and has upgraded its rating to “buy” on Solarvest, with target price of RM1.94, based on sum-of-parts valuation.
“We favour Solarvest as a frontrunner poised to benefit from government renewable energy (RE) initiatives and its unique in-house solar financing. We believe the company is well-positioned among RE players to capitalise on long-term growth potential from the National Energy Transition Roadmap.
Downside risks include reversal in solar module costs, heavy reliance on government initiatives and intense market competition, it added.
Meanwhile, Phillip Capital said upon the operations of the CGPP solar plants, these assets are projected to generate annually about RM7mil profit after tax from financial year 2027 (FY27) onwards, which makes up 10% of the brokerage’s existing FY27 estimated earnings forecast.
To recap, Solarvest had signed five corporate green power agreements under the CGPP with a Malaysian multi-asset exchange, two global semiconductor giants and a leading data centre service provider.
In a statement last Friday, the clean-energy specialist said these agreements were made through two joint ventures: one with Savelite Engineering Sdn Bhd and TNB Renewables Sdn Bhd and another solely with TNB Renewables Sdn Bhd.
The corporate consumers that signed the agreements, each with a tenure of 21 years, include Micron Technology and Bursa Malaysia Bhd.
Under the agreements, Solarvest and partners, as the solar-power producers, will undertake the ownership and development of two solar power plants located in Lumut, Perak and Kulim, Kedah.
Solarvest said the corporate consumers would collectively take up a combined power capacity totalling 59.98MW generated from the solar power plants for 21 years.
