KUALA LUMPUR (Nov 25): Solarvest Holdings Bhd (KL:SLVEST) posted a 28.1% rise in net profit to RM9.2 million for its second quarter ended Sept 30, 2024 (2QFY2025), from RM7.2 million a year earlier, driven by improved margins from its commercial and industrial segment, supported by a reduction in solar panel costs.

Earnings per share rose to 1.31 sen from 1.08 sen in 2QFY2024, according to the clean energy specialist's bourse filing on Monday.

Quarterly revenue, however, fell 25.7% year-on-year to RM103.9 million from RM139.9 million, due mainly to the completion of all fourth cycles of the large scale solar (LSS4) projects, which were still actively ongoing in the prior year’s corresponding quarter.

The core engineering, procurement, construction, and commissioning (EPCC) business of the solar energy solution segment remains Solarvest's primary revenue driver, representing 86.8% of total revenue in 2QFY2025.

Solarvest did not declare any dividend for the quarter.  

For the first six months of FY2024, Solarvest reported its highest-ever first-half net profit of RM17.04 million, up 22.7% compared to RM13.88 million in the previous corresponding period. Six-month revenue declined 37.7% to RM176.56 million, from RM283.29 million.

Solarvest group chief executive officer Davis Chong Chun Shiong said the group has recorded its highest-ever unbilled order book of EPCC projects amounting to RM961 million to-date.

“With this, a strongest-ever financial performance is expected in the second half of FY2025, supported by the commencement of CGPP (Corporate Green Power Programme) and improved profit growth,” Chong said in a statement.

“Looking ahead, we are optimistic about participating in the upcoming LSS5, which is expected to offer a minimum of 2GWac in solar project opportunities. The upcoming LSS5 announcement is going to mark the largest utility programme in the country’s history,” Chong added.  

He said the group’s LSS4 assets have been contributing positively to its recurring income stream, which are projected to generate RM23 million annually in electricity sales for the next 25 years.

In addition, its Powervest programme has secured multiple corporate power purchase agreements (PPAs) with a total capacity of 102 megawatt peak (MWp).

“Once completed within the next 12 to 18 months, these agreements are expected to generate RM43.7 million in annual income,” said Chong.  

“Moving forward, we will continue to diversify our revenue base through targeted expansion across key business segments. This includes replicating the success of our LSS4 strategy in the upcoming LSS5 programme, pursuing both asset ownership and development opportunities alongside EPCC projects,” he said.

Solarvest’s share price closed up one sen or 0.64% at RM1.58, bringing the group a market capitalisation of RM1.14 billion. Year-to-date, the stock has increased 22%.