The latest job lifts the company's outstanding order book to RM404.67mil, Kenanga Research noted.
PETALING JAYA: Samaiden Group Bhd’s main contract win for the development of a 10 megawatt (MW) large-scale solar photovoltaic (PV) power plant in Bahau, Negri Sembilan, is projected to yield a gross profit margin of 15% to 16%, says Kenanga Research.
The RM39.17mil engineering, procurement, construction and commissioning (EPCC) contract for the solar power plant is Samaiden’s second win under the Corporate Green Power Programme (CGPP) for financial year 2025 (FY25), bringing its year-to-date total job wins to RM91.17mil.
This latest job lifts its outstanding order book to RM404.67mil and should keep the company busy for at least the next 18 months, Kenanga noted.
“In the immediate term, we expect a strong influx of job opportunities driven by the 800MW CGPP with an end-2025 completion deadline, having already seen circa RM690mil contract awards under this programme announced by listed firms over the past three months, as well as an additional 500MW quota under the Net Energy Metering initiative.
“Based on our estimates, we expect Samaiden to stand a strong chance to secure around 10%, translating to RM240mil of the total PV system EPCC jobs under CGPP, which we estimate at RM2.4bil,” the research firm said in a report.Kenanga Research maintains its RM1.51 target price on Samaiden based on a sum-of-the-parts (SOP) valuation that values the group’s EPCC segment at 30 times fully-diluted FY25 earnings per share of 4.9 sen.
This is in line with the average forward price-earnings ratios of peers such as Solarvest Holdings Bhd
and Sunview Group Bhd.
Meanwhile, RHB Research said the new contract underlines Samaiden’s growth prospects, aligning with Malaysia’s strategy to increase its renewable energy mix.
Like its previous CGPP contract, this is a recurrent related-party transaction and will require shareholder approval at Samaiden’s AGM in November.
“The contract was granted by Bahau Power Sdn Bhd, whose shareholders include Angelaxy Power Sdn Bhd (51%), which in turn is wholly-owned by Samaiden’s managing director and major shareholder, Datuk Chow Pui Hee.”
Bahau Power’s remaining stakeholder is Uzma Environergy Sdn Bhd.
RHB Research is keeping its earnings estimates unchanged, as the contract is in line with the research firm’s order book replenishment assumptions.
“Our SOP-derived target price is kept at RM1.33 and we have yet to incorporate Samaiden’s CGPP assets, pending the finalisation of its stake in these projects.”
