PETALING JAYA: Solarvest Holdings Bhd
’s earnings outlook remains supported by strong order‑book visibility and a robust pipeline of renewable energy projects, even as near‑term profit recognition is expected to be backloaded.
This is according to Phillip Research, which said that the solar engineering, procurement, construction and commissioning (EPCC) specialist has secured RM1.6bil in contracts year‑to‑date (y-t-d), surpassing initial expectations and prompting the research house to revise its assumptions for order‑book replenishment.
Phillip Research said the stronger‑than‑expected contract wins reinforce its confidence in the sustainability of Solarvest’s 30% market share across the LSS5+ programme and subsequent large‑scale solar (LSS) cycles.
Solarvest’s outstanding order book currently stands at RM1.7bil, equivalent to 3.2 times its historical revenue for the financial year ended March 2025 (FY25).
The bulk comprises LSS5 projects, supplemented by contributions from the Corporate Green Power Programme as well as residential, commercial and industrial segments.
“Solarvest’s RM1.6bil y-t-d secured wins reflect strong order‑flow visibility, exceeding our initial assumptions,” Phillip Research said, adding that this has led to higher replenishment targets for the coming year. Despite the stronger pipeline, the research house trimmed its FY26 earnings forecast slightly, citing the timing of project execution and billing.
Earnings for FY26 to FY28 were revised by minus 1.5%, plus 4.4% and plus 1%, respectively, to reflect the backloading of EPCC progress and a slower ramp‑up in billings.
“We expect earnings contributions from LSS5 EPCC projects to be backloaded towards the fourth quarter of 2026, with the bulk of earnings recognition largely captured in FY27 and FY28,” it said.
Solarvest is actively tendering for approximately 9.2GWp of solar projects, including 8.1GWp in Malaysia and 1.1GWp overseas, as well as around 909MWh of battery energy storage system projects.
This tender pipeline is expected to support medium‑term growth visibility.
Phillip Research highlighted Malaysia’s expanding renewable energy framework as a key structural driver.
The sequential rollout of LSS programmes, from LSS1 through LSS5+, with LSS6 expected to enter the tendering phase in the first half of 2026, provides clearer earnings visibility for established players.
Solarvest’s growth prospects also extend to Sabah and Sarawak, particularly the former, where the company has strengthened its credentials through recent contract wins.
Notably, the group has secured a 30‑year power purchase agreement to develop and operate a 100MW solar photovoltaic facility in Mukah. “These developments align with Sarawak’s renewable energy expansion roadmap,” Phillip Research said, noting the state’s target to boost installed renewable capacity to 10GW by 2030 and 15GW by 2035.
Another potential catalyst is the finalisation of an EPCC contract for Solarvest’s 20%-owned 470MW LSS5+ project with Malakoff Corp Bhd, which could lift the group’s order book to between RM2.5bil and RM3bil. Over the longer term, Solarvest’s earnings mix is expected to shift as its solar‑asset portfolio expands.
While current earnings are largely EPCC‑driven, recurring income is set to rise as owned solar assets achieve commercial operation and begin generating electricity under long‑term power purchase agreements.
“By FY27, the commissioning of LSS5 assets is projected to provide steady returns over 20 to 25 years, significantly enhancing earnings visibility,” Phillip Research said, projecting recurring revenue of RM95mil to RM100mil by FY28.
Following its earnings revisions, Phillip Research maintained its “buy” call on Solarvest and raised its target price to RM3.80 from RM3.40, citing improved visibility and execution strength.
However, it cautioned that risks remained, including policy changes, project delays, competitive pressure and volatility in solar‑module prices.
