TA Research said the company’s order book expansion is accelerating.
PETALING JAYA: Samaiden Group Bhd, which is a beneficiary of the upcycle in the renewable energy (RE) plant-up under the National Energy Transition Roadmap (NETR), targets to double its revenue by the financial year 2026 (FY26).
In a report initiating coverage on the stock, TA Research said the company’s order book expansion is accelerating, driven by upcoming engineering, procurement, construction and commissioning (EPCC) awards for the Corporate Green Power Programme (CGPP) and the fifth cycle of the large-scale solar five (LSS5) projects.
“This could easily double revenue by FY26, while recurring income is set to grow exponentially given multi-fold capacity expansion driven by recently secured CGPP and biomass feed-in-tariff (FiT) capacities.”
It pointed out that Samaiden is targeting 200MW EPCC contracts under the record-sized two GW LSS5 auction, which could more than double its order book should it materialise.
“As it stands, the group is sitting on RM404.7mil worth of projects, representing 1.8 times its record FY24 revenue,” said the research firm.
As for recurring income, the group is targeting to increase that to 10% of revenue from below 1% within the next five years, partly underpinned by secured CGPP and FiT capacities scheduled to come online over the next three years.
At 12.9 times FY26 price-to-earnings ratio, TA Research said Samaiden trades at a deep discount to the historical mean of 20 times. “We see room for strong valuation re-rating as the sector enters an upcycle in RE capacity plant-up,” it said.
