Analysts believe that the clean energy solutions provider’s positive growth outlook is expected to continue on Malaysia’s commitments to renewable energy.
PETALING JAYA: Solarvest Holdings Bhd
has entered into an engineering, procurement, construction and commissioning (EPCC) contract worth RM320mil with Wawasan Demi Sdn Bhd for the construction of a photovoltaic plant in Kampar, Perak, under the large-scale solar five (LSS5) programme with a capacity of 99.99MW alternating current.
In a filing with Bursa Malaysia, the company said it will commence the execution of the works upon receipt of the notice to proceed from Wawasan Demi and shall ensure that the works are completed by Oct 30, 2027.
“The board is of the opinion that the acceptance of the EPCC contract is expected to contribute positively to the net assets and earnings per share of Solarvest and its group of companies for the financial year ending March 31, 2026 and onwards until the completion of the project.”
Meanwhile, analysts believe that the clean energy solutions provider’s positive growth outlook is expected to continue on Malaysia’s commitments to renewable energy (RE).
The company reported second quarter ended Sept 30, 2025 (2Q) net profit that jumped 103% to RM18.73mil compared to the same quarter a year ago while revenue rose 63.1% to RM169.47mil.
Phillip Capital Research, which reiterated a “buy” call on the stock with a target price (TP) of RM3.40, said its earnings per share forecasts remains unchanged as results were broadly in line with expectations.
“We continue to like Solarvest as a dominant player in the solar RE space and are set to benefit from the nation’s RE agenda.
“The recent 1.5GW joint investment with Brookfield further reinforces its long-term growth trajectory, offering greater engineering, procurement, construction and commissioning (EPCC) earnings potential and bolstering its recurring income base,” it added.
Hong Leong Investment Bank Research has raised financial year ending June 30, 2026 (FY26) to FY28 core profit after tax and minority interest by 10%, 14.2% and 14.9% respectively adjusting for beat factors, recalibrating assumed project progress as well as updating recurring income parameters.
The brokerage has maintained a “buy” rating and raised the TP to RM3.66 from RM3.50 post-earnings adjustments as well as reflecting an enlarged share base from the recent placement.
Solarvest completed a private placement of 84.7 million shares raising RM254.1mil about two weeks ago.
It said the company continues on a growth path with EPCC order book at RM1.33bil.
“We are optimistic over its order book and consequently, earnings trajectory going forward powered by EPCC conversion of ongoing programmes like large-scale solar five (LSS5), LSS5+, Sarawak LSS and MyBeST,” it said.
Maybank Investment Bank Research has trimmed its TP to RM3.54 from RM3.60 but maintained a “buy” call.
This is after adjusting for an enlarged share base post-placement.
“We keep our FY26 forecast unchanged but lift FY27 to FY28 earnings by 3% to 3.8% on interest cost savings post-completion of its private placement which we believe strengthens its balance sheet for future growth,” it said.
