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.
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