PETALING JAYA: BM Greentech Bhd
’s (BMG) recent contract win could account for 21% of its financial year 2027 (FY27) solar segment revenue forecast, providing clearer visibility on earnings.
Phillip Capital Research viewed this contract win as a positive for BMG, as it strengthens the group’s position in the growing self-consumption scheme and energy storage markets.
It estimates that battery energy storage system (Bess) integrated solar projects will deliver project profit before tax margins above the usual 8% seen in large-scale utility projects.
BMG secured a solar engineering, procurement, construction and commissioning project worth RM71mil in relation to a 36MW-peak solar photovoltaic plant at Kuala Lumpur International Airport (KLIA).
The contract was awarded by a joint venture between Cenergi and KLIA Aeropolis.
It said the contract accounts for 21% of its FY27 solar segment revenue forecast.
Maybank Investment Bank Research (Maybank IB) said the total project value of RM71mil comprised RM42mil for the engineering, construction and commissioning scope and RM29mil for the procurement contract.
The Bess component is not included in this stage.
While the project timeline was not specified, Maybank IB expects project completion timeline within 18 months, with majority of the earnings recognition in FY27, forming 23% of its solar segment forecast.
Both Maybank IB and Phillip Capital Research kept BMG’s earnings forecast unchanged as the latest contract falls under its replenishment assumptions.
Both research houses also reiterated their “buy” ratings on the stock with a target price of RM2.25 and RM2.24, respectively.
Phillip Capital Research cited key risks to its “buy” call include unforeseen changes in government policies and fluctuations in raw material prices.
While rising solar panel prices may put short-term pressure on costs, Phillip Capital Research noted BMG’s strategic expansion into Bess is expected to help support margins.
In addition, the official rollout of Solar ATAP (Solar Accelerated Transition Action Programme) replacement programme should ease market overhang and drive stronger adoption following the expiry of the Net Energy Metering 3.0 from June 2025, supporting improved solar segment performance in FY27, Phillip Research said.
Phillip Research continues to like BMG for its compelling growth prospects, sizeable addressable market driven by Malaysia’s National Energy Transition Roadmap initiatives, and appeal as an environmental, social and governance-focused energy solutions company.
Maybank IB expects the recent introduction of the Solar ATAP programme and the group’s increasing pivot towards integrated solar plus Bess solutions will position BMG for stronger earnings momentum in FY27.
The research house said it remained optimistic in BMG’s diversified sustainable energy solutions.
