PETALING JAYA: Solarvest Holdings Bhd
is expected to enter its next phase of growth, underpinned by an expanding renewable energy (RE) generation portfolio and its strategic partnership with Brookfield.
According to UOB Kay Hian (UOBKH) Research, the RE company’s prospects are expected to improve as it is in a good position to secure its first Corporate RE Supply Scheme (Cress) contract in the near term.
Following a recent site visit to the group’s solar farms commissioned under the Large Scale Solar 4 (LSS4) and Corporate Green Power Programme (CGPP) schemes, UOBKH Research said it was encouraged by Solarvest’s ability to build a meaningful recurring income stream alongside its engineering, procurement, construction and commissioning business.
“We expect the announcement of the group’s first Cress contract win to materialise in the near term,” it said.
UOBKH Research maintained its “buy” call on Solarvest with an unchanged target price of RM3.50, based on 25 times financial year 2028 (FY28) earnings per share, or one standard deviation above its mean price-to-earnings multiple.
The research house said management had outlined plans to increase recurring income from the RE generation division to 30% of group revenue in the medium term from approximately 5% currently.
“The group’s strategic partnership with Brookfield will pave the way for the group to develop and operate at least 1.5 gigawatts of utility-scale solar and battery energy storage system projects within the next three to five years,” it said.
It added that the visit highlighted Solarvest’s rapidly expanding solar asset portfolio of 580 megawatts (MW), of which 180MW has been commissioned.
While the RE generation division contributed only 5% of group revenue in FY26, it accounted for 23% of group earnings before interest, tax, depreciation and amortisation, with a stronger contribution expected in FY27 following the commissioning of its CGPP project.
According to UOBKH Research, Solarvest’s LSS4 farms have consistently exceeded energy export expectations by between 2% and 5% since commencing operations in FY24, while its CGPP solar farm commissioned in April 2026 has also delivered strong generation levels.
The research house attributed the outperformance to optimal project design, efficient grid interconnection infrastructure, and stringent operations and maintenance practices.
It added that ongoing initiatives, including reflective weed control carpets and water ponding beneath solar modules, could lift energy generation yields by up to 5%, while reducing maintenance costs.
It also expects Solarvest’s 70%-owned Setia Kawan Energy 30MW solar farm to make a positive earnings contribution in FY27.
