PETALING JAYA: Continued execution of Corporate Green Power Programme (CGPP) projects will drive the bulk of Solarvest Holdings Bhd
’s revenue in the financial year 2026 (FY26).
Meanwhile, newly secured fifth large-scale solar (LSS5) engineering, procurement, construction and commissioning (EPCC) projects could kick off in the fourth quarter of FY26 (4Q26). Hong Leong Investment Bank (HLIB) Research said the group began FY26 on a strong footing supported by resilient EPCC margins.
Solarvest posted above expectation 1Q26 results with revenue of RM137.7mil, which was 38.7% lower quarter-on-quarter (q-o-q), but 89.6% higher year-on-year (y-o-y) and core profit after tax and minority interests of RM16.9mil (minus 27.0% q-o-q, plus 115.7% y-o-y), underpinned by stronger-than-anticipated EPCC execution, while the outsized 4Q25 contribution from “others” (development and green attributes trading) normalised due to seasonality.
“Margins were healthy, with 1Q26 EPCC segmental margins coming in above FY25 by 1.8%, even as lower-margin large-scale projects made up a higher proportion of EPCC revenue (utility-scale projects contributed 59% to revenue in 1Q26 versus 41% in FY25).
“We expect to see EPCC margin sustained in coming quarters, considering secured projects remain unaffected by recent cost pressures,” HLIB Research said.
The research house said management has set an ambitious FY26 revenue target of RM1bil translating to about 86% expansion y-o-y.
HLIB Research noted that apart from CGPP projects anchoring revenue, the target relies on the scaling up of LSS5 execution by 4Q26 where RM504mil value of works remain unbilled in the first half of FY26, with several more to formalise.
