RHB Research said the group’s order book, as at end-September 2022, stood at RM325mil.
PETALING JAYA: Samaiden Group Bhd is poised to see growth in its order book with the resumption of solar projects following the softening of polysilicon prices.
According to RHB Research, the group’s order book, as at end-September 2022, stood at RM325mil and this is set to cover the financial years 2023 (FY23) to FY24.
“We are upbeat on Samaiden upon the recovery of the solar sector as panel prices have already moderated meaningfully.
“The increasing initiatives in clean energy to achieve Malaysia’s target of 31% renewable energy mix by 2025 will further support the group’s three-year earnings compound annual growth rate of 33.8%, driven by growth in order book,” it said in a report yesterday.
It noted that in FY22, the group had secured three large-scale solar engineering, procurement, construction and commissioning (EPCC) contracts and is building its asset ownership through the Corporate Green Power Programme (CGPP) where Samaiden is participating in the bidding of the 600 megawatt quota.
“This is in line with the strategic plan to enlarge its clean energy portfolio to generate a diverse recurring income stream for the purpose of balancing out seasonal EPCC projects. It is not only aiming for solar farms but also eyeing any renewable energy and waste-to-energy power plants,” added RHB Research.
Currently, Samaiden has a tender book of around RM0.6bil, albeit exclusive to the domestic market and consisting mostly of EPCC jobs.
RHB Research said the group’s “management had guided that its overseas ventures have had some leads that could bear fruit in the coming years”.
Towards this end, it has several partnership agreements including with Management Venture Asia (Cambodia) Ltd, Thingnario Ltd and Aneka Jaringan Holdings to expand regionally.
The research house has raised its target price to RM1.06 (from 76 sen) after increasing FY23 to FY24 forecast earnings by 2% on higher commercial and industrial EPCC order assumptions following a rerating of the segment on softening panel prices and arrival of the CGPP.
It has also upgraded the stock to a “buy” from “neutral” saying it is currently trading at an undemanding valuation of 13 times FY24’s price-to-earnings.
