PETALING JAYA: Biomass boiler design and manufacturing group BM Greentech Bhd
’s (BMG) acquisition of a 100% equity interest in Nefin V Power Sdn Bhd (NVP) – a special-purpose vehicle with the rights to develop a 29.99MWac solar photovoltaic farm under the Corporate Green Power Programme – is viewed positively by analysts.
They believe this will enable BMG to convert its existing engineering, procurement, construction and commissioning (EPCC) role into direct ownership of the solar asset.
This marks a strategic shift towards being an independent power producer with long-term recurring income while retaining project-based EPCC earnings during construction, said Phillip Capital Research.
It said although the agreement does not include a profit guarantee and NVP reported a net loss of RM1.1mil for its 2025 fiscal year, it believes the RM3.6mil acquisition price primarily reflects the value of the CGPP quota and project development rights rather than near-term earnings.
BMG’s balance sheet remains healthy, with a net cash position of RM294.1mil as at the financial year ended March 31 (FY26), the research house noted, adding that the total capital commitment of RM15.6mil represented only around 5% of its net cash balance, and is therefore, not expected to materially affect its financial position.
“We expect minimal earnings contribution before commercial operations date, with recurring income expected to commence from FY28 onwards,” it added.
It said it was making no changes to its earnings forecast, pending completion of the transaction.
“We reiterate our ‘buy’ rating and 12-month target price of RM2.35,” it said, adding that it continued to like BMG for its compelling growth prospects, sizeable addressable market and appeal as an environmental, social and governance-focused energy solutions company.
The research house said risks to its “buy” call include unforeseen changes in government policies and fluctuations in raw material prices.
On Monday, BMG said its wholly-owned subsidiary Plus Xnergy Holding Sdn Bhd, had acquired 100% equity interest in NVP.
The acquisition is expected to create a new stream of recurring income from 2027, when the power plant is commissioned.
The NVP power plant is expected to generate an average of 60,000MWh solar energy per year, avoiding more than 1.1 million tonnes of carbon emissions over its 25-year operational lifespan.
BMG said NVP had already secured long-term power purchase contracts with offtakers, including Fortune 500 companies from the semiconductor and food industries with operations across Malaysia and South-East Asia, which provides predictable revenue visibility.
