KUALA LUMPUR (Jan 20): ACE Market-listed Samaiden Group Bhd, which offers investors exposure to renewable energy, climbed a new peak this morning.
The stock soared to a record high of RM1.78, a 269% jump from its initial public offering price of 48 sen on Oct 15 last year.
Samaiden is one of the few counters on Bursa Malaysia that are proxies to renewable energy. Others include Solarvest Holdings Bhd, Cypark Resources Bhd and JAKS Resources Bhd.
It should be noted that the share prices of its peers have also risen lately. Solarvest jumped 70.33% to RM2.01, from RM1.18 on Oct 30 last year while Cypark Resources climbed 75.31% to RM1.42, from 89 sen on Nov 13 last year.
After the sharp rise in share price, Samaiden is now trading at a price-earnings ratio of 36.55 times, based on its earnings per share of 0.05 sen.
Last Friday, the group announced that it had secured a RM25.8 million contract from Gimzan Plywood Sdn Bhd to develop a biomass-based power plant in Terengganu.
"The award is expected to contribute positively towards the future earnings of Samaiden," said the group.
The group also announced in November it had achieved a net profit of RM1.02 million for the first quarter ended Sept 30, 2020, on the back of a revenue of RM11.23 million.
On its prospects, the group said, Malaysian government is working towards increasing the use of renewable energy resources, including mini-hydro, biomass, biogas and solar as an initiative to reduce carbon dioxide (CO2) emission.
"This will provide us with opportunities to provide engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems and power plants. We will continue to leverage on our core competency and experience in providing end-to-end services for potential solar PV projects," said the group.
The group also said it will continue to strengthen its core competency in EPCC by expanding locally — through the establishment of sales and technical support services, and purchases of new equipment and tools — and internationally, starting with Vietnam in the near term following its first purchase order in the country.