PETALING JAYA: Analysts are positive on Samaiden Group Bhd as it is set to be a prime beneficiary of an upcycle in renewable energy (RE).
In a report, TA Research said it reaffirmed its “buy” call on Samaiden with a higher target price of RM1.43, underpinned by a record-high order book, strong net cash position and a secure pipeline of RE assets to boost recurring income.
“The group’s order book rose to a record high of RM521.2mil, boosted by the latest Corporate Green Power Programme (CGPP) contract win. We estimate CGPP contracts now account for 40% of the group’s total order book while other utility-scale solar projects account for 14%,” the research house said.
Other projects including bioenergy and commercial and industrial projects account for the remaining enlarged order book which now represents a 2.3 times multiplier against its financial year 2024 (FY24) revenue.
Samaiden’s engineering, procurement, construction and commissioning (EPCC) tender book has risen an estimated RM1.6bil, with more than half comprising utility-scale solar projects, including Large Scale Solar 5 (LSS5) project bids.
TA Research said LSS5 entails a record-high capacity auction of 2,000MW, which translates into estimated total EPCC value of RM7bil.
The research house said Samaiden aims to maintain a 10% share of EPCC work for LSS5, adding this would translate to RM700mil in order book expansion should it materialise.
TA Research said solar-module prices are now at a low having falled 64% off peak levels in 2021 to the current range of US$0.10 per watt, due to overcapacity in China.
“Any further protectionist measures by the Trump administration against Chinese and South-East Asian modules will further exacerbate the situation. This is a silver lining for downstream players in the solar EPCC and asset-ownership space. We believe the benefits of cheaper module costs will be reflected in the upcoming CGPP and LSS5 projects.”
Meanwhile, Hong Leong Investment Bank Bhd Research (HLIB Research) said Samaiden’s prospects remain positive in the coming quarters and is expected to accelerate on the back of execution ramp up of its record-high EPCC orderbook.
“We gather that management’s guidance of starting its long idle 10MW biomass EPCC project in December remains unchanged. Samaiden should continue benefitting from continued rollout of new programmes, among them being LSS5, as well as extension of the new Net Energy Metering (NEM 3.0) programme,” the research house said.
Additionally, HLIB Research noted that Samaiden’s results for its first quarter of financial year 2025 (1Q25) were within its expectations.
“Its revenue of RM49.4mil and core profit after tax and minority interests (Patami) of RM3.9mil came in at 22% full year forecasts. We have adjusted 1Q25 core Patami for RM1.2mil of expenses on debt facilities and a RM631,000 gain on investments,” the research house said.
HLIB Research said it is maintaining its “buy” call on Samaiden with a target price of RM1.44.
“We have incorporated the value of its secure recurring income stream into our valuations.
The stock provides diversified RE exposure to both the growing domestic solar industry and bioenergy segments,” the research house said.
