Maybank IB has maintained its earnings forecasts for the company.
PETALING JAYA: Solarvest Holdings Bhd
’s near-term earnings contribution is expected to be modest at about RM1mil to RM2mil, but its long-term growth prospects remain positive.
This is supported by the rollout of energy efficiency (EE)-related policies, including the Energy Efficiency and Conservation Act, Maybank Investment Bank Research (Maybank IB) said.
It said the 2GW blanket order validity until December 2026 is expected to be more than sufficient to cover its current RM1.7bil outstanding order book.
It also includes its 20% owned 470MWac large-scale solar five or LSS5+ project with Malakoff Corp Bhd, which is in the advanced stage of engineering, procurement, construction and commissioning (EPCC) contract finalisation.
“Solarvest has indicated that project cost impact remains manageable and reiterated its 8% to 10% profit before tax (PBT) margin remains intact for its EPCC project pipeline,’’ Maybank IB said.
This was consistent with its earnings forecasts, which already assume EPCC segment PBT margins to normalise to 8% to 10% from 16.3% in the six-month financial year 2026 (FY26) period.
Maybank IB has maintained its earnings forecasts and a “buy” rating on the stock with a target price of RM3.67 a share, implying 31 times the FY27 price earnings ratio.
“We continue to like Solarvest for its leading position, over 30% market share, in the solar renewable energy sector and as a key beneficiary of the nation’s energy transition goals,’’ it said.
“With respect to investors’ concerns over solar panel cost pressures, these stem primarily from the recent sharp increase in silver prices which historically account for about 5% of solar module costs,’’ the brokerage added.
This is further compounded by China’s reported plan to cancel value-added tax (VAT) export rebates, currently at 9%, for photovoltaic solar products effective April 2026.
Collectively, these could bring module prices to US$0.11 to US$0.13 per watt from US$0.09 a watt in the fourth quarter of 2025.
However, the industry has largely anticipated higher panel costs in 2026, Maybank IB noted.
Solarvest had proactively locked in a 2GW solar module blanket order with its key supplier in fourth quarter 2025 average panel prices.
This effectively mitigated cost risks across its project pipeline.
“While modules delivered after April 2026 may still be exposed to the 9% VAT rebate cancellation, the ringgit strength, which has appreciated 6% year-on-year against China’s yuan and 10% against the US dollar should provide a partial hedge against this impact,’’ Maybank IB noted.
It said Solarvest is also evaluating the feasibility of accelerating module deliveries to project sites ahead of April 2026.
However, this would likely result in higher storage and logistics costs.
Solarvest’s 22% strategic stake in ACE Market-listed Solar District Cooling Group Bhd (SDCG), completed in December 2025, is expected to expedite its entry into EE solutions.
Leveraging SDCG’s expertise in building management systems or BMS and mechanical and electrical or M&E works, Solarvest aims to cross-sell EE solutions to its existing commercial and industrial customer base.
It also aims to offer integrated solar renewable energy, battery energy storage system and EE proposition.
Solarvest closed 3.1% down to RM2.81 yesterday.
