Govt policy boosts Samaiden's transition to RE asset owner
The award of three new bioenergy assets – two biomass and one biogas plants – signals continued momentum in Samaiden's transition from an engineering, procurement, construction and commissioning (EPCC) contractor to an RE asset owner.
'We reiterate our positive stance on Samaiden's outlook following its latest win, which reinforces the group's strong position in the RE space,' said the research house.
The new plants, awarded to Samaiden's subsidiaries Legasi Green Resources Sdn Bhd (88%-owned), Sumas Energy Sdn Bhd (51%) and SC Green Solutions Sdn Bhd (100%), collectively adds 18MW of installed capacity to the group's portfolio.
They will be developed under a 21-year power purchase agreement (PPA), with the FiT 2.0 scheme offering a fixed tariff for the first 10 years, and a bidding-based mechanism thereafter.
'These assets further strengthen Samaiden's diversified RE portfolio – spanning solar, biogas, and biomass – and underscore its growing role in driving Malaysia's clean-energy transition,' said RHB Research in a note to clients yesterday.
While earnings estimates remain unchanged for now, back-of-envelope calculations by RHB Research suggest the trio of plants could add around RM11mil to annual earnings, based on effective equity stakes.
'Management is guiding for a high single-digit to low double-digit internal rate of return (IRR),' said the research house, adding that capital expenditure for the plants is generally estimated at RM10mil to RM12mil per megawatt.
The facilities are expected to be running by 2028.
In addition to its asset-building plans, Samaiden also stands to benefit from EPCC contracts related to other shortlisted FiT 2.0 projects, with RHB Research noting potential upside to its valuation as contributions from these new bioenergy projects and Samaiden's large scale solar 5 (LSS5) asset are not yet included in the research house's base case.
Seeing potential upside to its valuation of the stock, which had risen 24.8% in the last month, RHB Research is forecasting recurring net profit for Samaiden to rise 24.2% for its financial year ended June 2025 (FY25) and 41.6% in FY26.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
a day ago
- The Star
Trading ideas: MMAG, Keyfield, KAB, Rimbunan Sawit, Jentayu, AYS, Country Heights, Metronic, Nestle, ViTrox, Oriental Interest, KIP REIT, Luxchem, Betamek
MMAG Holdings Bhd has entered into a conditional aircraft sale agreement to acquire a Boeing 737-800BCF freighter for US$25.9mn (RM109.9mn) cash. Keyfield International Bhd has secured 2 work orders from Petronas Carigali Sdn Bhd for the provision of accommodation work boats to support the national oil company's offshore operations. Kinergy Advancement Bhd has secured fee-in approvals for two hydropower projects with a total installed capacity of 8.04MW under the Sustainable Energy Development Authority's FiT 2.0 initiative. Rimbunan Sawit Bhd has announced the termination of its JV with LCDA Holdings Sdn Bhd to develop a parcel of native customary rights land in Ulu Selangau, Sibu into an oil palm plantation. Jentayu Sustainables Bhd said Sumitomo Corporation does not intend to extend a MoU the parties signed 2 years ago to collaborate on renewable energy projects. AYS Ventures Bhd said the voluntary takeover offer by its associate company 3HA Capital Pte Ltd for all shares in Singapore-listed CosmoSteel Holdings Ltd has become unconditional, after 3HA Capital's shareholding crossed the 50% threshold. Country Heights Holdings Bhd 's wholly-owned unit, Country Heights Commercial Development Sdn Bhd has been served with a winding-up petition by the Inland Revenue Board over RM312,560 in unpaid taxes. Metronic Global Bhd is ending its JV with Zhuhai SingYes New Materials Technology Co Ltd to develop and market smart city solutions across the country. Nestlé (Malaysia) Bhd's net profit rose 20.0% YoY to RM112.1mn in 2QFY25, thanks to a disciplined focus on operational efficiency and a prudent pricing strategy, which helped offset rising input costs. Vitrox Corporation Bhd reported a flat net profit of RM28.1mn in 2QFY25, despite a 33.4% YoY increase in revenue to RM 183.0mn due to a sharp rise in tax provision following the expiration of its pioneer status in mid-June. Oriental Interest Bhd reported its highest-ever quarterly net profit of RM45.5mn for 3QFY25, driven by record revenue of RM305.3mn from construction progress of ongoing projects and contribution from newly launched developments. KIP Real Estate Investment Trust 's FY25 net property income surged 24.4% YoY to RM96.8mn, mainly driven by the contribution from its 7 KIPMalls and its 4 industrial properties, as well as the newly bought D'pulze Shopping Centre and TF Value-Mart. Luxchem Corporation Bhd 's 2QFY25 net profit declined by 27.1% YoY to RM8.9mn amid lower sales from its business segments. Betamek Bhd 's 1QFY26 net profit rose 10.5% YoY to RM5.4mn due to consistent favourable performance of the ringgit against the USD and the CNY as well as the better expenses monitoring by each unit of the group.
The Star
a day ago
- The Star
Renewable Energy Fund charge lifted for green initiatives
PUTRAJAYA: The government will exempt the 1.6% Renewable Energy Fund charge on electricity tariffs under renewable energy programmes effective Aug 1. This was disclosed by the Energy Transition and Water Transformation Ministry yesterday. The exemption covers the Green Electricity Tariff initiative, Corporate Renewable Energy Supply Scheme and Community Renewable Energy Aggregation Mechanism. The ministry said the measure aligned with the government's goal to accelerate the development and integration of renewable energy into the national electricity supply. 'With this exemption and related enhancements, the ministry hopes to incentivise users, particularly corporations and industries, to continue supporting the national energy transition agenda towards achieving a 70% renewable energy mix in electricity supply by 2050,' the ministry said yesterday, Bernama reported. The move was also expected to spur more positive growth in the renewable energy industry. The ministry said the 1.6% charge on electricity tariffs, introduced in 2011, was to fund the growth of renewable energy through the Feed-in Tariff (FiT) mechanism implemented by the Sustainable Energy Development Authority. 'Since the introduction of the FiT mechanism, the distributed renewable energy capacity in the national power supply system, particularly from solar sources, has grown significantly, from just 5 megawatts (MW) in 2011 to 5,100 MW,' the ministry said. FiT also boosted electricity generation from biogas, biomass and small hydropower sources, which now collectively contribute 855 MW to the national supply. The ministry said following the implementation of the new electricity tariff structure on July 1, the government reviewed existing renewable energy programmes and resolved to further promote renewable energy among electricity users.
The Star
a day ago
- The Star
Acquisitions forecast to lift AME-REIT's earnings
RHB Research said it expected quarter-on-quarter earnings to improve. PETALING JAYA: Analysts have maintained their forecasts for AME Real Estate Investment Trust (AME-REIT) after the recent announcement of its first quarter results. RHB Research, which raised its target price for AME-REIT to RM1.80, said the REIT's results for the first quarter of its financial year ending March 31, 2026 (1Q26) met expectations, supported by contributions from a recent acquisition. 'We turned more bullish on its valuation given wider yield spread post-rate cut in the overnight policy rate and rising investor interest in domestic-centric names. 'We like the REIT for its high debt headroom, substantial exposure to floating-rate debt (81%) that will benefit from lower rates, and sturdy sponsor-backed pipeline to tap Johor's growing industrial market,' the research house added. At last look, the stock was at trading RM1.60. RHB Research said it expected quarter-on-quarter earnings to improve, supported by the ongoing acquisition of properties slated for completion in 2Q26. Beyond the immediate term, FY26 earnings should be further lifted by the full-year contribution from a recent acquisition spree, which includes five properties estimated to generate an additional RM4.5mil in FY26 gross rental income, complemented by the renewal of nine existing tenancies (27% gross rental), the research house added. 'We see room for continuing inorganic growth, supported by a low gearing level of 23%, providing financing headroom of RM220mil on top of the recent rate cut. 'Meanwhile, we view the downside risks from the sales and service tax expansion as relatively limited for AME-REIT, given its long-term master leases and a tenant profile that largely consists of established multinational companies capable of absorbing higher tax-related costs.' RHB Research noted that on a yearly basis, 1Q26 revenue rose 14.7% to RM14.1mil, supported by additional contributions from two properties (i-Park SAC 23 and 24, and iTechValley 46) acquired in 4Q25, as well as higher rental rates from tenancy renewals. Despite a 3.2% increase in 1Q26 core profit, net margins declined by 7.2 percentage points to 64.9%, mainly due to a rise in interest expenses following the acquisitions and higher operating costs. The research house said risks for AME-REIT include cancellation of acquisitions, slowdown in economic growth, and lower-than-expected rental revisions.
