The group’s outstanding order book currently stands at RM515.7mil.
PETALING JAYA: Analysts are optimistic about solar energy player Samaiden Group Bhd due to its strong job replenishment prospects.
The group’s outstanding order book currently stands at RM515.7mil, with the majority (80%) comprising solar-related engineering, procurement, construction, and commissioning (EPCC) projects, while the remainder consists of other renewable energy (RE) jobs.
MIDF Research noted that Samaiden is also actively bidding for other jobs with a tender book of RM1.8bil.
“We are optimistic on replenishment prospects, with sizeable EPCC jobs coming from the fifth large-scale solar (LSS5) and the upcoming LSS5+ and LSS6 programmes, on top of a strong interest in rooftop solar among commercial and industrial and residential segments,” it said in a report.
TA Research echoed MIDF Research’s optimism.
It stated that if the group is able to win the 10% EPCC share in LSS5 and LSS5+, it could contribute up to RM1.4bil of order book replenishment for Samaiden.
Meanwhile, new project launches by the Energy Transition and Water Transformation Ministry – namely the LSS6 auction cycle, bidding for the battery energy storage system by third parties and the community RE aggregation scheme – are expected to further strengthen Samaiden’s order book replenishment prospects.
As Samaiden is in talks with potential offtakers under the corporate renewable energy supply scheme (Cress), TA Research expects better take-up if a potential revision of the base tariff occurs in the second half of the year.”
Cress rates are currently hovering around the 60 sen per kilowatt per hour.
“While Cress rates are still high relative to grid power, we reckon the potential revision in base tariff, especially for high consumption commercial segment users, could shift the cost dynamics in Cress’ favour, potentially driving better take-up,” it stated.
Additionally, TA Research is of the view that the group’s margins will improve by the end of the third quarter of financial year 2025 (3Q25) or 4Q25
As Samaiden moves into a higher-margin panel installation phase, its earlier low-margin project phases may have weighed on its profit margins this quarter.
Adding to that, MIDF Research stated that Samaiden acknowledged the current competitive solar EPCC scene as more players flood the market.
The counter closed at 1.08 sen yesterday.
