KUALA LUMPUR (Dec 31): Samaiden Group Bhd’s (KL:SAMAIDEN) prospects appear bright as contract flows from the fifth round of the large-scale solar programme begin next year, analysts said.
The engineering, procurement, construction, and commissioning (EPCC) contracts for the programme also known as LSS5 may materialise in the second half of 2025 after Samaiden was shortlisted for a 99.99-megawatt plant in Pasir Mas, said RHB Investment Bank and Apex Securities.
Earnings impact from the Kelantan project remains uncertain without details on tariffs and capital required, though RHB Investment Bank estimates an average net profit of about RM16 million annually, based on an 8% internal rate of return and project capital of RM2.3 million per megawatt.
Further out, Samaiden aims to capture at least 200 megawatts or 10% of LSS5, translating to job opportunities worth an estimated RM600 million, which is “achievable, as it aligns with Samaiden’s proven track record of capturing a 15% market share in previous LSS cycles,” said Apex Securities.
RHB Investment Bank raised its target price by 29 sen to RM1.62 while Apex Securities lifted its valuations by five sen to RM1.71 with contributions from the new assets.
The consensus 12-month target price is now at RM1.50, according to Bloomberg, a potential return of 16% from current price of RM1.29. Analysts are largely sanguine on the stock, with six ‘buy’, one ‘hold’ and no ‘sell’ calls.
On Monday, Samaiden announced that it has received a letter of notification from the Energy Commission for the project under Package 3 of the two-gigawatt programme.
The project, backed by a 21-year solar power purchase agreement with Tenaga Nasional Bhd (KL:TENAGA), is expected to be completed by the commercial operation date on Oct 11, 2027.
“We expect Samaiden to undertake the entire EPCC works on its own,” said MIDF Amanah Investment Bank, noting the record high order book of RM521.2 million.
Job replenishment outlook, meanwhile, appears secure with LSS5 and the extension of the net energy metering programme that allows consumers to install solar systems on their roofs, it added.
All three research houses have Samaiden on ‘buy’ calls.