PETALING JAYA: Samaiden Group Bhd
’s latest contract win for an engineering, procurement, construction and commissioning (EPCC) project involving a 99.99 megawatt (MW) large-scale solar plant under the Large Scale Solar 5+ (LSS5+) programme is expected to replenish its order book and strengthen earnings visibility through financial year 2027 (FY27) and FY28.
The contract was secured from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd for YTL Power International Bhd’s LSS5+ solar plant.
Analysts noted that this marked Samaiden’s first win of an LSS5+ EPCC contract. Although specific project details were not disclosed, TA Research estimates the contract value at around RM250mil.
Following this, the research firm said Samaiden’s outstanding order book had risen 57% to RM687mil, before taking into account order-book burn in the first quarter of FY27.
It expects the project to be completed by 2028 at the latest, with revenue recognition spread across FY27 and FY28.
Beyond LSS5+ and the upcoming LSS6 awards, it expects the Corporate Renewable Energy Supply Scheme (Cress) projects to provide the next leg of order-book replenishment, following the launch of the Cress acceleration package, which improves project economics and bankability through a 30% reduction in the System Access Charge and a minimum contract tenure of 10 years.
“According to the Energy Transition and Water Transformation Ministry, about 3.1 gigawatts (GW) of Cress projects have been registered, which could translate into an estimated RM12bil to RM14bil in EPCC opportunities.
“We understand that Samaiden is close to securing a sizeable Cress EPCC contract, which could help the group achieve its RM1bil order book target,” TA Research said in a note to clients.
Meanwhile, the LSS6 auction, which comprises 2,650MW of solar capacity and 1,250MW of battery energy storage system capacity, could generate an estimated RM8bil to RM9bil in EPCC opportunities.
According to the research firm, Samaiden is targeting up to a 20% share of the LSS6 EPCC-asset opportunities, in line with its previous guidance. LSS6 projects are expected to be awarded in the first quarter of 2027, followed by EPCC awards in the second half of 2027.
The research house raised its FY27 to FY29 net profit forecasts by 4%, 25% and 21%, respectively, to reflect the latest LSS5+ project and higher assumptions for Cress contract wins.
TA Research maintained a “buy” recommendation on the stock, but raised the target price to RM3.45.
