PETALING JAYA: Building on its record performance in the financial year ending March 31, 2026 (FY26), Solarvest Holdings Bhd
is looking ahead to an equally strong, if not stronger, FY27.
Notably, the company’s order book stands at an all-time high of RM2.5bil, while solar module prices have moderated to US$0.10 to US$0.11 per watt.
Despite its shape-price rise, research firms like UOB Kay Hian (UOBKH) Research expect the stock to re-rate further on the back of potential Corporate Renewable Energy Supply Scheme (Cress) projects won by June this year.
“The stock has done well, rising 36% since our initiation in March 2026.
“We continue to believe the stock will re-rate due to its stable margin, record order book win and good execution.
“Maintain buy with a higher target price of RM3.50, pegged to 25 times FY28 earnings per share or plus one standard deviation from mean price-to-earnings (PE),” UOBKH Research said in a note to clients.
Shares of the engineering, procurement, construction and commissioning (EPCC) outfit traded around 4% higher yesterday to touch RM2.81 at noon.
In FY26, Solarvest’s net profit had surged 54% year-on-year to RM79.8mil.
Earnings were underpinned by the execution of EPCC projects under the Corporate Green Power Programme (CGPP) and healthy renewable energy generation from its large-scale solar four (LSS4) project, among others.
Solarvest is looking at LSS6 as the next meaningful solar tender, with an announcement anticipated within the next one to two months, said analysts.
According to BIMB Research, Solarvest is also eyeing Battery Energy Storage System phase 2 project as a next growth area, as battery storage can complement both rooftop and utility-scale solar, improve power delivery, and help address grid and output constraints as project sizes increase.
Solarvest also highlighted that it had already positioned itself for the opportunity through its stake in Solar District Cooling Group.
“On the Cress project, Solarvest highlighted the system access charge (SAC) as the key hurdle, as the final structure on the rate and mechanism is still unclear.
“A town hall with the Energy Transition and Water Transformation Ministry is scheduled for May 25 to seek resolution, while discussions with offtakers are ongoing on risk-sharing structures, including pass-through, hybrid, and fixed-price modelsm,” BIMB Research said.
It said Solarvest is targeting to finalise Cress agreements within six months, subject to SAC clarity.
“Solarvest’s RM2.5bil outstanding order book is equivalent to 3.3 times FY26 revenue, and earnings recognition is expected to be progressively realised over FY27 to FY28,” said the research house.
The order book is primarily anchored by utility-scale and LSS-related projects, including CGPP, which account for RM2.3bil or around 91% of the total.
The remaining balance comprises commercial and industrial and residential projects.
An analyst told StarBiz that rising electricity tariffs would likely accelerate solar adoption.
He believes the company is well-positioned, given its estimated 30% market share in the local solar EPCC segment.
While the stock trades at a PE multiple of 32.4 times, which is a premium to peers, he said the valuation is justified by Solarvest’s strong execution track record, stable margins and robust order book visibility.
