PETALING JAYA: Samaiden Group Bhd
is expected to benefit from a surge in solar engineering opportunities amid Malaysia’s push for a 70% renewable energy (RE) mix by 2050.
Analysts said the group’s long-term growth remained intact, despite short-term earnings hiccups linked to margin pressures and project timing.
Samaiden’s financial results for the nine months ended March 31, 2025 came in largely below expectations.
RHB Research said the miss was due to softer margins amid ongoing progress of its corporate green power programme (CGPP) contracts.
Kenanga Research similarly pointed to slower job execution and lower-than-expected margins in the CGPP, with the group’s core net profit of RM13.1mil accounting for only 55% of its full-year forecast.
Despite the earnings disappointment, research houses remained optimistic about Samaiden’s prospects as large-scale solar (LSS) contract awards accelerate.
RHB Ressearch highlighted that the group recently bagged its third engineering, procurement, construction and commissioning (EPCC) contract under LSS5 – a RM100.7mil project from GVU Fajar Timur Sdn Bhd for a 27.6MWac solar power plant in Kelantan.
“Including the award, the group has secured a total of 67.58MWac (worth RM254.3mil) in EPCC contracts under the LSS5,” it said.
TA Research, taking into account recent wins, including the GVU job and a RM45mil award from Pax RE, estimated Samaiden’s updated order book at RM588mil – a record high, representing 2.6 times the group’s FY24 revenue.
It noted that order book replenishment prospects are underpinned by an aggregate 4GW capacity under the LSS5 and LSS5+ auction cycle, which entail EPCC prospects of RM12bil to RM14bil.
Kenanga Research added that Samaiden stood a strong chance to secure 10%, translating to RM500mil of the total photovoltaic system EPCC jobs under LSS5, valued at RM5bil.
It expected a “strong influx of job opportunities” with a deadline for LSS5 project completion by end-2026, alongside another 500MW quota under the net energy metering scheme.
MIDF Research noted Samaiden was among the shortlisted bidders to develop a 99.99MW solar farm in Kelantan and it has inked a 21-year power purchase agreement with Tenaga Nasional Bhd.
“Samaiden is among the key beneficiaries of EPCC prospects under LSS5, other upcoming large-scale solar schemes, and the long-term RE growth potential from the National Energy Transition Roadmap,” it said.
While TA Research and Kenanga Research had trimmed their target prices to RM1.38 and RM1.43, respectively, both retain “buy” calls, citing strong fundamentals and RE tailwinds.
RHB Research lowered its target price to RM1.44 but remained upbeat.
“We expect more positive news flow from the group in the near term – Samaiden targets at least 10% share of the available 2GW capacity,” it said.
MIDF Research maintained its target price of RM1.59 and “buy” rating on Samaiden.
