MIDF Research said with the new win, Samaiden’s outstanding order book has risen to RM365.5mil.
PETALING JAYA: Samaiden Group Bhd’s maiden contract to build a large-scale solar photovoltaic (LSSPV) power plant in Sungai Petani, Kedah, is a shot in the arm for the group as it will not only boost its order book, but spur its earnings in the near term.
MIDF Research said with the new win, Samaiden’s outstanding order book has risen to RM365.5mil.
“We understand that Samaiden is eyeing at least 80 megawatt (MW) more of engineering, procurement, construction and commissioning (EPCC) jobs for the Corporate Green Power Programme (CGPP), which translates into a potential RM240mil to RM320mil incremental order book.
“Samaiden has been recently awarded a RM52mil contract to build a 14MW alternating current LSSPV power plant in Sungai Petani, Kedah.
“This is expected to be completed within 12 months by Aug 30, 2025, in order to achieve the scheduled commercial operation date,” added the research house.
“We expect between mid-to-high single digit pre-tax margin for the project and are positive on Samaiden’s first CGPP EPCC win, as we believe that there are more jobs to come, with more announcements expected in the fourth quarter of 2024.”
The brokerage is maintaining its “buy” call on the group with a sum-of-parts-derived target price of RM1.57 as it views the company being one of the key beneficiaries of EPCC prospects under the CGPP and the long-term renewable energy growth potential from the National Energy Transition Roadmap.
