PETALING JAYA: Solarvest Holdings Bhd
is likely to see stronger quarters ahead, with the group tendering for potential Corporate Green Power Programme (CGPP) jobs, says Apex Research.
“The group currently holds an unbilled order book of RM469mil, expected to be recognised progressively over the financial years 2025 and 2026 (FY25-FY26F).
“Going forward, we foresee more project awards from CGPP with tenders of about RM1bil in contract value. This is likely to be followed by contributions from the two gigawatt (GW) large-scale solar five (LSS5) programme, with shortlisted winners expected to be announced in the fourth quarter of 2024.
“The solar initiatives and a robust overseas project pipeline of over 2GW will cement future order book replenishment,” said the research house.
In its first quarter ended June 30, 2024 (1Q25), Solarvest reported core net profit of RM8.1mil, which was within expectations despite representing only 16.8% of Apex Research’s FY25 earnings forecast and 17.4% of consensus estimates.
The research house anticipates performance picking up in the coming quarters, supported by potential job awards from the CGPP programme. It maintained a “buy” recommendation with an unchanged target price of RM1.94 based on a sum-of-parts valuation.
Meanwhile, Hong Leong Investment Bank Research (HLIB Research) said it expect FY25 to be a “back-loaded year” for the company given the ramp-up period for CGPP projects and positive-seasonality effect in 4Q.
“Based on Solarvest’s pool of CGPP off-takers, we reckon the company should be a prime beneficiary of this model,” said HLIB Research, which maintained a “buy” call on the stock with a RM2 target price.
