MIDF Research has maintained Samaiden’s earnings estimates.
PETALING JAYA: MIDF Research is positive about Samaiden Group Bhd’s expansion into Indonesia to tap the rapidly expanding renewable energy (RE) market in the republic.
Samaiden’s entry into Indonesia will be done via a joint venture (JV) arrangement between its wholly-owned subsidiary, Samaiden SG Pte Ltd and PT MCS Bina Energi (MCS).
Both Samaiden SG and MCS will hold a 70:30 stake in a JV company to be set up in Indonesia that is involved in engineering, procurement, construction and commissioning and investment of solar photovoltaic systems and power plants, RE and environmental and consulting services, operation and maintenance services and build own-operate-transfer RE facilities.
MIDF Research, in a note to clients, said there are prospects for the proposed JV company with “the management currently identifying some projects in Indonesia and some of which are already in discussion stage.”
The JV arrangement will see Samaiden focusing on providing RE technical knowledge and advisory, while MCS shall source and identify potential business opportunities in Indonesia, it added.
Currently, Samaiden’s outstanding order book stands at RM313.5mil.
In Malaysia, MIDF Research noted the prospects remain bright for the group for replenishment, given the upcoming EPCC tenders for the 800MW quota allocated under the Corporate Green Power Programme (CGPP).
“We understand that Samaiden is eyeing at least 100MW of EPCC jobs for CGPP, which translates into a potential RM300mil to RM400mil incremental orderbook,” said the research house.
Hence, the MIDF Research has maintained Samaiden’s earnings estimates with a stock target price of RM1.57.
MIDF Research said: “We continue to value the group’s EPCC business at 26 times price-to-earnings ratio.”
It has maintained a “buy” call on Samaiden being one of the key beneficiaries of EPCC prospects under the CGPP and the long-term RE growth potential from the National Energy Transition Roadmap.
