KUALA LUMPUR (June 20): Apex Securities Bhd has initiated coverage on Solarvest Holdings Bhd (KL:SLVEST) with a “buy” rating at RM1.61 and a target price of RM1.95, based on a Sum-of-Parts (SOP) valuation.

In a note on Thursday, the research house said it anticipates Solarvest’s core profit to reach a record breaking RM50.8 million in FY2025F and RM60.3 million in FY2026F, anchored by robust order book replenishment from various government solar initiatives.

“We pegged 35.0x P/E multiple to the EPCC contribution slight discount with two-year historical mean average, while the solar assets value is derived from DCF methodology (key assumptions include WACC @ 6.7%),” it said.

Apex said its bullish stance stems from several key factors: (i) direct proxy to Malaysia’s renewable energy (RE) target under the National Energy Transition Roadmap, (ii) Solarvest's solid track record, having completed 1.2GW of projects, which is the highest among peers, (iii) Solarvest's efforts in building a solar empire to generate diversified revenue streams, (iv) uniqueness of Solarvest's in-house solar financing programme Powervest, which fosters the adoption of solar photovoltaics in the commercial and industrial solar sectors, (v) consistent capture of an average 20% market share of engineering, procurement, construction and commissioning jobs from LSS 1, 2 and 4, (vi) Solarvest's robust tender book, currently standing at 6.1GW (Malaysia 4.0GW and Overseas 2.0GW) and (vii) normalising of solar module prices.