PETALING JAYA: Samaiden Group Bhd is eyeing several renewable energy (RE) projects, such as the large-scale solar programme five (LSS5), with the aim of having RE assets account for about 12% of group revenue.
This underpins the group’s internal target of generating 10%-15% of revenue from recurring income, said TA Research.
The research house reaffirmed its “buy” call on Samaiden, with an unchanged target price of RM1.69 per share.
Samaiden shares gained 0.81% to close at RM1.25 last Friday.
According to TA Research, Samaiden is one of the prime beneficiaries of an upcycle in RE plant development, supported by its record-high order book, strong balance sheet and a secured pipeline of RE assets aimed at boosting recurring income.
The key catalysts identified are LSS5 and LSS5+ engineering, procurement, construction and commissioning (EPCC) contract awards, Corporate Renewable Energy Supply Scheme (Cress) EPCC contract awards, and asset wins under LSS5+.
The key risks include a sharp rise in raw material costs, such as solar modules, and delays in project implementation.
The group is targeting up to RM700mil in potential EPCC jobs from LSS5, which translates into an estimated 200MWac of project capacity, or a 10% share of the total capacity auctioned under LSS5.
It expects the awards of the EPCC contracts to materialise from the second quarter 2025 (2Q25) onwards, which will further expand its record-high order book of RM521mil, which is 2.3 times the financial year 2024 (FY24) revenue.
For EPCC prospects, it aims for a similar 10% share, or 200MWac, of LSS5+ EPCC jobs, translating to an additional RM700mil in incremental EPCC contracts.
Beyond LSS5 and LSS5+, the group is eyeing an EPCC role in Tenaga Nasional Bhd
’s 2.5GW hybrid hydro floating solar project and UEMITRAMAS’ 1GW hybrid solar photovoltaic (PV) plant in Johor.
Its unit was also shortlisted to develop a 99.99MWac solar PV plant under Package 3 (30MW to 500MW category) of the LSS5 auction cycle.
For LSS5+, Samaiden is aiming for an additional 100MWac capacity (as an asset owner), this time through a joint venture stake in a consortium.
The company has also submitted a bid of 18MW under the latest Feed-in-Tariff 2.0 programme for bioenergy assets, with the bidding outcome expected to be announced within the next two months.
Improvements have been made to Cress, and the group is in talks with prospective off-takers, including those in the data centre industry, TA Research added.
