Solarvest’s earnings likely to pick up in FY23

PETALING JAYA: Clean energy specialist Solarvest Holdings Bhd has a strong unbilled order book at RM762mil that will continue to support its earnings growth.

In addition, the company has secured a total of RM565mil in engineering, procurement, construction and commission (EPCC) contracts to develop the fourth cycle of the large-scale solar or LSS4 programme focusing on rooftop solar for residential, commercial and industrial buildings.

Maybank Investment Bank Research expects the company’s earnings to pick up in financial year 2023 (FY23).

It said the solar photovoltaic assets are expected to increase by 50MW from 1MW which would be completed by 2023, generating a yearly net profit of RM8mil.

“We understand that the tender for LSS5 is expected to commence soon, which can help keep its order book momentum going,” it added.

The research house also expects a positive outcome for Solarvest’s 140MW tender in Taiwan.

Solarvest unveiled its five-year plan focusing on maintaining market leadership in the solar EPCC services, renewable asset development and venturing into new the clean energy ecosystems.

The research house has a “buy” call and a target price of RM1.29 on Solarvest.

Among the downside risks are the slower-than-expected work progress for its EPCC works which will affect the timing of earnings recognition and the higher prices of solar panels and inverters.

Solarvest shares closed four sen lower to 78 sen yesterday.