KUALA LUMPUR (Jan 6): Aizo Group Bhd (KL:AIZO), formerly known as Minetech Resources Bhd, has been selected to develop a 99.99MW large-scale solar photovoltaic plant in Kampar, Perak.
The project has been awarded to Wawasan Demi Sdn Bhd (WDSB), a 63%-owned subsidiary of Coral Energy Sdn Bhd, which is a wholly owned unit of Aizo.
WDSB received a letter of notification from the Energy Commission (EC) on Dec 23, 2024, subject to meeting certain obligations, including the submission and execution of required project documents to confirm acceptance.
The announcement follows The Edge's report in December, which stated that the EC had finalised the winning bids for the Large Scale Solar 5 (LSS5) programme, comprising four packages with a total capacity of 2,000MW.
The report named WDSB as one of the shortlisted outfits under “Package 4”, alongside other notable companies such as Gadang Holdings Bhd's (KL:GADANG) 70%-owned Nusantara Suriamas Sdn Bhd, with a 99.99MWac project in Selangor; Conextone Energy Sdn Bhd's 90MWac farm in Melaka; and a venture linked to Edra Power Holdings Sdn Bhd and Selangor state-linked Worldwide Holdings Bhd, with a 300MWac project in Selangor.
In a statement on Monday, Aizo said the project will be executed under a solar power purchase agreement with a 21-year tenure, and is expected to reach its commercial operation date by Oct 30, 2027. This marks a significant step in the company’s diversification into sustainable energy projects.
The development will be funded through a combination of internally generated funds and/or bank borrowings, said the company.
While the project is not expected to have a material impact on the company’s financial performance for the financial year ending June 30, 2025, Aizo anticipates it will positively contribute to future earnings once operational.
“The Kampar LSS plant reflects Aizo’s ongoing commitment to advancing renewable energy in Malaysia. Building on our experience in the renewable energy sector, this is our second remarkable LSS project awarded by the EC, following the successful completion of our first LSS project in May 2023,” said Aizo executive director Ahmad Rahizal Datuk Ahmad Rasidi.
“This milestone represents another significant step towards supporting the country’s clean energy goals. Solar power is a critical component of Malaysia’s energy transition, and we are proud to contribute to a greener future,” he said.
Aizo has reported consecutive annual losses since 2022. For the July-September 2024 quarter, the group incurred a net loss of RM2.53 million, compared to a net profit of RM348,000 during the same period of the previous year, attributed to higher administrative expenses, driven by investments in strategic growth initiatives and workforce development.
Revenue for the quarter under review declined by 15.63%, falling to RM28.05 million from RM33.24 million. The decrease was primarily due to the completion of certain projects and the early stages of new projects within the civil engineering division.
As of end-September 2024, the group had cash and bank balances of RM4.53 million, along with RM7.2 million in fixed deposits with licensed banks. This compares to its total lease liabilities and borrowings, which stood at RM44.73 million.
Shares of Aizo closed up half a sen or 3.85% at 13.5 sen on Monday, giving the group a market capitalisation of RM249.3 million.