PETALING JAYA: Solarvest Holdings Bhd
’s recent contract win would likely contribute about RM7mil in profit before tax over financial years 2026 (FY26) to FY28.
This is based on an assumption of an 8% profit before tax for large-scale utility solar projects, said Phillip Capital Research.
“This latest win lifts Solarvest’s outstanding order book to RM1.6bil, providing earnings visibility through FY27,’’ it added.
The company remains on track to achieve its target of a RM2bil order book for FY26 with RM1bil worth of engineering, procurement, construction and commissioning (EPCC) contract anticipated in the fourth quarter of financial year 2026 (4Q26).
Additional upside stems from the 470MW Perak solar project with Malakoff Corp Bhd, which remains pending finalisation.
“Upon conversion, this project could add RM1bil in contract value, potentially lifting Solarvest’s unbilled order book to RM2.6bil,’’ said Phillip Capital Research.
The upcoming large-scale solar six or LSS6 bidding in the first half of 2026, alongside battery energy storage system (Bess) integration and the MyBeST programme, is expected to unlock RM7bil to RM10bil of EPCC opportunities across 2026 to 2027.
Solarvest won an EPCC contract to develop a 36MW solar photovoltaic plant under a LSS5+ programme in Padang Siding, Perlis.
The contract is valued at RM90mil and is expected to be completed by February 2028.
Phillip Capital Research maintains its “buy” rating with an unchanged target price (TP) of RM3.80 a share.
“The key downside risks include government renewable energy (RE) policy changes, project execution delays, intense market competition, and volatility in solar module prices,’’ Phillip Capital Research said.
Apex Securities Research also maintained its “buy” call with an unchanged TP of RM3.57 a share.
So did Maybank Investment Bank Research (Maybank IB) and RHB Research whose TPs are RM3.72 and RM3.49 a share, respectively.
“We believe Solarvest is well-positioned to capitalise on government renewable energy initiatives like the Corporate Renewable Energy Supply Scheme and Solar Accelerated Transition Action Programme, thanks to its unique in-house solar financing and its position as Malaysia’s largest solar EPCC player,’’ said Apex Securities Research.
Kenanga Research maintained its TP of RM3.45 a share with an “outperform” call on the stock.
“Following the recent steep sell-off despite fundamentals staying intact, the stock is now trading at an appealing 23.8 times price earnings ratio.
“We anticipate a pullback in solar panel prices post-April, and the major suppliers from China are unlikely to dishonour the agreement.
“Hence, we believe current levels present an attractive re-entry opportunity to the renewable energy sector, which is undergoing a secular growth trajectory,’’ said RHB Research.
Maybank IB said Solarvest remains its sector top pick for its leading position (more than 30% market share) in the solar RE sector and as a key beneficiary of the nation’s energy transition goals.
“Recent share price action, which reflects concerns on the higher solar panel prices, offers an opportunity to accumulate on weakness,’’ Maybank IB said.
Kenanga Research said it likes Solarvest for the bright outlook of the RE market in Malaysia, its dominant market position, strong earnings visibility backed by a sizeable outstanding order and tender books, and recurring income from a growing portfolio of solar assets.
