PETALING JAYA: Samaiden Group Bhd
’s latest project win under the latest large- scale solar or LSS5+ bidding round presents a small share price accretion potential but the engineering, procurement, construction and commissioning (EPCC) services could offer the more lucrative opportunity.
Kenanga Research said Samaiden had a strong chance of securing up to RM1bil worth of EPCC jobs from the LSS5 and LSS5+ bidding cycles.
“We expect a strong influx of job opportunities driven by the 4GW LSS5 and LSS5+ rollout given a completion deadline by end-2027.
“Based on our estimates, we see a strong chance of Samaiden securing around 10% of the EPCC pie, translating to RM1bil of the total photovoltaics system EPCC jobs under LSS5 and LSS5+, which we estimate at RM10bil,” the research house stated in its latest report.
Samaiden and partner JBB Builders Sdn Bhd was one of the winners in the LSS5+ award round, securing a total capacity of 99.99MW.
Kenanga Research said the project is expected to generate an internal rate of return of 8% for Samaiden, translating into a two-sen-a-share accretion.
“While contribution will only begin from financial year 2028 (FY28), we lift our target price (TP) to RM1.60 a share (from RM1.58) to reflect the new asset,” it stated while maintaining its “outperform” call on the stock.
Kenanga Research projected the 21-year power purchase agreement to have a power tariff of 14 sen to 15 sen/kilowatt hours for the project located in Segamat, Johor, which is expected to be commissioned by end-October 2027.
The risk of panel cost fluctuation had been minimised as Samaiden has pre-procured panels in advance, it added.
TA Research said the latest project win would lift Samaiden’s gross power generation capacity in the pipeline to 263MW (against an estimated 1.2MW operational capacity currently), which is expected to come online gradually over the next three years and boost its recurring income. It estimated the capital expenditure for the facility at around RM280mil.
“We maintain our earnings projection and sum-of-parts (SOP) based TP of RM1.47 a share at this juncture, pending further details on Samaiden’s stake in the LSS5+ project.
“Assuming a 70% stake, we estimate a net value accretion of RM80mil (14 sen/ share), potentially enhancing our SOP valuation by 10%,” it stated.
