KUALA LUMPUR (Sept 4): Solarvest Holdings Bhd (KL:SLVEST) is expected to see a strong boost in returns over the next three years, supported by a record-high order book and growing market share, following its LSS5+ solar project win with Malakoff Corporation Bhd (KL:MALAKOF).
Kenanga Research, which maintains an ‘outperform’ rating, noted that the engineering, procurement, construction and commissioning (EPCC) contract will raise Solarvest’s outstanding order book to a record high of RM2.4 billion, surpassing the RM2 billion mark for the first time and keeping the company busy with projects for at least the next 18 months.
Undertaking EPCC works will also lift Solarvest’s 2026 year-to-date job wins to RM1.8 billion, surpassing its full-year assumption of RM1.2 billion, with an anticipated gross profit margin of between 10% and 12%, the research house noted, as it raised its target price to RM3.25 from RM2.41.
Maintaining a ‘buy’ rating on the stock, Phillip Capital highlighted that Solarvest is expected to derive a steady income stream from the project as an asset owner “at a later stage”, contributing an estimated RM4 million in profit after tax based on its 20% stake in the project.
The research house also revised its target price upwards to RM3.36.
Among the 10 analysts covering the stock, there are seven ‘buy’ ratings and three ‘hold’ calls, according to Bloomberg.
Phillip Capital raised its FY2027-2028 earnings forecasts on stronger order book replenishment, while Kenanga Research lifted its FY2026 job win assumption, driving higher FY2026-2027 earnings forecasts on expectations of a larger 30% LSS market share.
On Tuesday, an 80:20 consortium between Malakoff and Solarvest clinched a 470MWac solar power plant project in the Larut and Matang district of Perak under the LSS PETRA 5+ (LSS5+) programme. The consortium entered a 21-year power purchase agreement with Tenaga Nasional Bhd (KL:TENAGA), with commercial operations targeted by end-2027.
At the time of writing on Thursday, Solarvest’s share price stood at RM2.40, valuing the company at RM1.97 billion.