PETALING JAYA: Malakoff Corp Bhd may see its environmental, social, and governance (ESG) credentials improving following its involvement into renewable energy (RE) projects moving forward.
The company had earlier in the year entered into a heads of agreement to develop, own, operate, and maintain three hydroelectric renewable energy plants in Kelantan.
RHB Research, is positive on the intended business ventures that would see its net renewable energy portfolio rising to about 100 megawatts (MW).
However, it said the achievement had lagged behind its targets of 1000MW (for 2026) and 1,400MW (for 2031).
On the outlook moving forward, Malakoff’s subsidiary Alam Flora performance should continue to underpin the group’s earnings, it said.
However, as coal prices are expected to moderate and Malakoff may continue to see fuel margin fluctuations affecting its bottom line this year.
“We cut financial year (FY) 2023 to 2025 earnings by 6% to 39% to account for negative fuel margins,” the research house said.