PETALING JAYA: RHB Research expects Samaiden Group Bhd
to post core earnings in the range of RM7mil to RM8mil for its third quarter of financial year 2026 (3Q26) results, which is slated for release today.
This translates into a year-on-year (y-o-y) growth of between 40% and 60%.
The brokerage, in a note to clients, said that the earnings trajectory was underpinned by the commencement and progressive construction of utility-scale solar projects, and a stronger net margin (first-half 2026 or 1H26 8% versus 6% in 1H25).
According to RHB Research, demand for solar installation is gaining traction following higher electricity bills owing to the Middle East conflict.
For the month of April, the government reduced the automatic fuel adjustment rebate to 0.47 sen per kilowatt hour (kWh) from 2.15 sen per kWh, resulting in a 4% average monthly bill increase.
On top of that, Tenaga Nasional Bhd anticipates an eight-sen per kWh adjustment in July, which in turn will result in an additional 1% increase from current tariff rates.
“We view this as a fresh catalyst to drive solar adoption, supported by government-led initiatives such as the Solar Accelerated Transition Action Programme, in line with Malaysia’s commitment to achieve net zero by 2050,” it said.
Meanwhile, the brokerage raised Samaiden’s order-book replenishment assumption ahead of its 3Q26 results.
It noted that Samaiden’s outstanding order book remained healthy at RM600.5mil as at 1H26, comprising 75% utility-scale contracts, 20% commercial and industrial, and 5% rooftop and other solar jobs.
“We expect a stronger 2H26 as more utility scale engineering, procurement, construction and commissioning (EPCC) works are recognised such as the large-scale solar (LSS) and Corporate Green Power Programme,” added RHB Research.
Notably, the two-GW LSS6 tender may only be called in 2H26 versus earlier guidance of 2Q26 due to market uncertainties arising from the Middle East conflict, which will kickstart a new round of growth cycle for solar EPCC players such as Samaiden.
In terms of valuation, RHB Research said it raised Samaiden’s earnings estimates for financial year 2026 (FY26), FY27 and FY28 by 9.2%, 10.7% and 8.6% respectively after having imputed a higher order-book replenishment assumption from RM400mil to RM600mil.
The brokerage, which kept a “buy” call on the stock, set a new target price at RM1.76 per share. Key risks include the discontinuation of solar incentives, competition and higher-than-expected costs. Samaiden shares closed at RM1.23 yesterday.
