PETALING JAYA: Samaiden Group Bhd has guided that its engineering, procurement, construction and commissioning (EPCC) orders under the fourth large-scale solar (LSS4) programme will be fully realised by June.
This is expected to significantly boost the group’s earnings in the second half of financial year 2024 (2H24), says RHB Research.
With Samaiden having been steadily securing renewable energy (RE) contracts in the recent past, a busy FY25 is foreseen.
“We remain optimistic on Samaiden’s prospects, driven by its extensive pipeline and solid position in the RE sector,” RHB Research said in a report, keeping its “buy” call and upping the stock’s target price to RM1.76 (from RM1.46).
As at December 2023, Samaiden’s order book stood at RM358.2mil, and this excluded the RM440mil Kulim Hi-Tech Park contract with circa 35% coming from LSS4 orders. It noted that the group bagged two EPCC contracts recently – a 50 megawatt (MW) ground mounted solar photovoltaic plant at KHTP and a 2MW small hydro facility at the Pelagat Forest Reserve in Terengganu.
“Moreover, it managed to secure a gross total of 43.32MW capacity under the Corporate Green Power Programme (CGPP) and a seven MW biomass power purchase agreement under the Feed-in Tariff scheme.
“We expect these to start in 2H24, providing earnings visibility for the upcoming year.”
Further bolstering Samaiden’s FY25 activities will be upcoming CGPP tenders, which are set to gain traction in the next few months.
The group’s recent CGPP win may help it for LSS5, which opened for bidding last week.
“However, the categories it targets are likely to favour companies capable of applying for larger quotas given the 500MW capacity limit,” said the research house.
