RHB Research said Solarvest continues to be a beneficiary of the country’s commitment to energy transition.
PETALING JAYA: Solarvest Holdings Bhd
’s prospects are expected to be driven by its continued order book expansion from the Corporate Green Power Programme (CGPP) contracts and local corporate power purchase agreements (PPAs).
RHB Research said the regional clean energy expert’s nine-month financial year 2024 (9M24) core earnings of RM24.7mil came in within its expectations and was driven by the recognition of large scale solar 4 (LSS4) projects and recurring income from LSS4 assets.
“Solarvest continues to be a beneficiary of the country’s commitment towards energy transition, as reflected by its strongest quarter recorded since listing.
“Revenue and core profit for 9M24 came within our expectations at 76%. It exceeded street’s at 83% of full-year forecasts.
“The better year-on-year (y-o-y) performance was largely driven by the significantly higher revenue – driven by completion of LSS4 jobs, coupled with increased electricity sales contributions from its commissioned LSS4 plants,” it said in a report.
RHB Research added that higher interest expenses (increased 85.2% y-o-y) and effective tax rate (rose 78.2% y-o-y) are slightly masking earnings.
On the other hand, higher-margin electricity sales from Solarvest’s LSS4 plants, softening of panel costs and operational efficiencies led to a significant rise in margin in the third quarter of FY24 (3Q24), which improved to 25% from 3Q23’s 16.1%.
