PETALING JAYA: Analysts are positive on Solarvest Holdings Bhd
’s recent proposed joint investment with Brookfield Catalytic Transition Fund (CTF) Asia Holdings, which enhances Solarvest’s investment merits and earnings sustainability.
Brookfield operates under Brookfield CTF, a climate-and-energy transition investment vehicle established by Brookfield Asset Management.
CTF is mandated to deploy capital into clean energy and transition assets in emerging markets – including South and South-East Asia – with a fund size target of US$5bil.
This marks its first investment in Malaysia.
Analysts believe the partnership enables Solarvest to jointly develop and expand its renewable energy (RE) assets portfolio while boosting engineering, procurement, construction, and commissioning (EPCC) order book over the next three to five years.
According to Hong Leong Investment Bank (HLIB) Research, Solarvest is expected to have a minimum EPCC pipeline value of RM5.3bil.
“In our view, the partnership will skew towards development of projects under the Corporate Renewable Energy Supply Scheme (CRESS) programme,” the research house said.
It pointed out that at a minimum capacity of 1.5 gigawatt-peak (GWp) solar plus battery energy storage systems (BESS) project, it anticipates an EPCC value of works exceeding RM5.3bil versus the current unbilled orderbook of RM1.2bil.
“The specific project joint venture companies will likely be equity accounted, enabling recognition of EPCC earnings during construction as well as recurring income post.
“We gather that preliminary work on land identification as well as on potential offtakers has already commenced,” HLIB Research said.
It expects Solarvest to further add on to its stream of future recurring income, increasing its large-scale solar asset capacity from 336 megawatt-peak to 1.1GWp.
The research house noted that Brookfield has signed a number of notable hyperscale data centre (DC) offtake agreements.
These included a 10.5 GW solar and wind agreement with Microsoft and a three GW hydro deal with Google.
“Given Malaysia’s mega DC pipeline, coupled with Brookfield’s existing track record of structuring RE deals, we expect the partnership to prosper in the coming years,” it added.
HLIB Research has maintained its “buy” rating with a higher target price (TP) of RM3.50 from RM3.18.
”We like the stock for its strong position within the growing domestic solar industry, regionalised operations, and strong business partners,” it shared.
Similarly, RHB Research anticipates Solarvest to bag RM3bil to RM5bil in EPCC contracts (including BESS) through this partnership, while leveraging Brookfield’s low-cost capital and corporate network, which is critical to securing CRESS offtake agreements.
The research house has kept its “buy” rating on the stock with a higher TP of RM3.26 from RM2.95.
According to RHB Research, financing will be structured on a project-by-project basis, with external debt raised via loans, bonds, or sukuk, supplemented by equity contributions from both parties.
Each project will be held under a special purpose vehicle, with Solarvest owning 51% and Brookfield 49%.
The research house said Solarvest’s outstanding orderbook stood at RM1.2bil (77.8% utility-scale) as at the first quarter of financial year 2026.
“Management targets RM2bil by the end of 2025, with upside into calendar year 2026, driven by MyBeST programme roll-outs, large-scale solar Petra 5+ EPCC awards, and further utility-scale solar projects, namely Cress and other programmes,” it added.
