Apex Research said the exercise will fortify Solarvest’s financial standing while positioning it to capture upcoming large-scale solar opportunities.
PETALING JAYA: Solarvest Holdings Bhd
’s planned private placement is expected to strengthen its balance sheet and support its expansion into larger renewable energy (RE) projects.
Analysts view the move as a strategic step to sustain growth momentum amid Malaysia’s accelerating energy transition.
RHB Research highlighted that post-placement, Solarvest’s share capital will increase to RM570mil from RM315.9mil, with total issued shares rising to 932.4 million from 847.7 million.
On a pro forma basis as of March 31, net assets per share will improve to 77 sen from 55 sen, while gearing is expected to decline sharply to 0.38 times from 0.69 times.
“The reduced leverage and strengthened equity base will enhance Solarvest’s financial flexibility to pursue larger projects and further expand its RE portfolio,” the research house said.
RHB Research maintained its “buy” recommendation but trimmed its target price for Solarvest to RM3.49 from RM3.58.
Apex Research expressed optimism about the placement, noting that the exercise will fortify Solarvest’s financial standing while positioning it to capture upcoming large-scale solar opportunities.
“We are positive about the proposed placement. While the issuance will strengthen Solarvest’s balance sheet through debt reduction, it will also result in an estimated 8.4% dilution to earnings per share (EPS) for 2027 under the fully diluted scenario, after accounting for the conversion of 20.7 million outstanding warrants and 59.2 million shares under the employees’ share option scheme,” the research house said.
“The placement also reflects management’s readiness to capitalise on upcoming utility-scale solar projects, which should reinforce Solarvest’s growth trajectory over the medium term,” it added.
Following the proposed exercise, Apex Research raised its 2026 solar order book assumption for Solarvest to RM2.5bil from RM2.4bil, citing enhanced financing capacity to secure larger utility-scale projects.
“For 2027, we maintain our order book replenishment forecast at RM2.2bil, as most resources are likely to be channelled toward executing existing projects,” it said, adding that earnings forecasts for 2026 and 2027 have been revised upward by 1.5% and 3.3%, respectively.
Apex Research maintained its “buy” call with a higher target price of RM3.55 for Solarvest.
Phillip Research, meanwhile, said while the enlarged share base will dilute Solarvest’s near-term EPS by between 6% and 9%, the stronger balance sheet allows it to pursue additional engineering, procurement, construction and commissioning projects to bolster its RM1.2bil order book.”
Post-placement, it expects Solarvest to be in a net cash position of RM195mil from 0.15 times net gearing.
Phillip Research maintained its “buy” rating and target price for Solarvest at RM3.40.
Solarvest has proposed to issue up to 84.7 million new shares, equivalent to 10% of its enlarged share capital, at a price to be determined later – not exceeding a 10% discount to the five-day volume-weighted average price prior to fixing.
The placement, expected to be completed in the first half of next year, could raise RM254.1mil based on an indicative issue price of RM3 per share.
