KUALA LUMPUR (Aug 20): Solarvest Holdings Bhd (KL:SLVEST) is expected to see stronger earnings momentum in the second half of its financial year ending March 31, 2027 (2HFY2027), as its Large Scale Solar 5 (LSS5) and Corporate Green Power Programme (CGPP) projects move into more advanced stages of execution and revenue recognition, according to analysts.
Phillip Capital expects Solarvest to recognise 45% to 50% of its order book in FY2027, with panel deliveries set to ramp up from the third quarter. Its 135-megawatt-peak Powervest portfolio is also expected to generate RM54 million in recurring income once fully energised over the next 12 to 18 months, the brokerage said in an Aug 20 report.
Solarvest's unbilled order book stood at RM2.4 billion, with utility-scale projects accounting for 92%. Of that, LSS5 and East Malaysia LSS projects made up 46%, LSS5+ accounted for 38% and CGPP contributed 8%, while the balance came from commercial and industrial and residential projects, according to Phillip Capital.
The group reported a 19.8% increase in 1QFY2027 net profit to RM19.02 million from RM15.88 million a year earlier. Revenue for the quarter rose 13.2% to RM155.94 million from RM137.74 million, driven mainly by utility-scale projects amid continued progress on LSS5 and CGPP.
Phillip Capital maintained its 'buy' call on Solarvest with a sum-of-parts (SOP) target price of RM3.52. It cited the company’s leading position in renewable energy and its exposure to Malaysia’s energy transition, supported by the RM2.4 billion order book and an 11.8-gigawatt-peak tender book.
Near-term catalysts include the expected shortlisting for LSS6 in the first quarter of 2027 and the first Corporate Renewable Energy Supply Scheme (CRESS) wins in the second half of 2026, it added.
Apex Securities also expects revenue recognition to accelerate, with about RM1.15 billion of Solarvest’s existing order book projected to be recognised in FY2027.
The brokerage said Solarvest is well positioned for the 2.5-gigawatt LSS6 rollout slated for January 2027, citing its strategic land bank access and ability to secure grid interconnection. It expects the group to target more than 20% of the engineering, procurement, construction and commissioning market.
Apex Securities is also positive on Solarvest’s growing exposure to data centre power supply, with 300 to 500 megawatts of capacity potentially to be secured under the CRESS framework. It kept its core net profit forecasts unchanged at RM127.9 million for FY2027, RM232.1 million for FY2028 and RM211.6 million for FY2029.
However, Apex Securities downgraded the stock to 'hold' from 'buy', while maintaining its RM3.31 target price based on an SOP valuation.
Maybank Investment Bank Research likewise expects earnings momentum to strengthen sequentially as LSS5 and CGPP projects progress further. It maintained its 'buy' recommendation and RM4.31 SOP target price, implying a 2027 price-to-earnings multiple of about 32 times.
At Thursday’s midday break, Solarvest shares rose three sen or 0.99% to RM3.06, valuing the company at RM2.96 billion. The stock has declined 1.92% so far this year.