PETALING JAYA: Clean energy services and solutions provider Samaiden Group Bhd
is banking on the Corporate Renewable Energy Supply Scheme (Cress) to lift its order book to RM1bil by year-end following a signal that it is close to landing its first Cress engineering, procurement, construction and commissioning (EPCC) contract.
According to TA Research, the solar contractor’s outstanding order book is at about RM675mil, or 1.9 times revenue cover, after the RM238mil EPCC award for YTL Power International Bhd’s 99.99MWac large-scale solar five plus or LSS5+ plant.
“This could easily catapult the group’s order book to its RM1bil target,” the research house said.
Management guided that integrating Battery Energy Storage System (Bess) into Cress projects could lift EPCC values to RM4mil to RM4.5mil per megawatt alternating current (MWac).
“Even a few projects of 50MWac to 100MWac could easily drive up the group’s order book and earnings growth momentum,” TA Research added.
However, Samaiden said it would prioritise profitability over volume.
About 70% of Samaiden’s RM3bil tender book is Cress-related.
Beyond the contract it is close to securing, it is working on three more projects totalling 400 megawatts (MW).
It is also tendering for a 100MW EPCC job and could act as asset developer for a 200MW project.
With this, TA Research said Samaiden believes the economic internal rate of return for Cress assets could reach as high as 12%.
