Big bets on Bess
Dubbed MyBeST, the initiative is structured as a two-stage bidding process and targets 400MW of battery power capacity with 1,600MWh of energy storage, slated to begin full operation by 2026/2027.
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The Star
a day ago
- The Star
Samaiden gets profit enhancement via new RE jobs
TA Research estimated a gross aggregate capital expenditure of RM171mil for the upcoming FiT assets. PETALING JAYA: Samaiden Group Bhd 's recent contract wins in the renewable energy (RE) sector indicate a potential 20% enhancement to its annual earnings and a 10% valuation enhancement once all three projects come online. In a report, TA Research said under the latest Feed in Tariff (FiT) 2.0 bidding cycle, Samaiden secured contracts to develop three new bioenergy power generation plants with aggregate gross capacity of 18MW. The three contracts that were won separately include a 1.5 megawatt (MW) biogas plant in Bachok, Kelantan, a 5.5MW biomass plant in Tangkak, Johor and a 11MW biomass plant in Kemaman, Terengganu. TA Research said the positive trajectory for Samaiden's earnings and valuation is based on a high single-digit pooled internal rate of return and a capital expenditure (capex) of circa RM10mil per MW. All three assets are expected to be commissioned by July 25, 2028 and will operate under the 21-year RE power purchase agreement. The research house estimated a gross aggregate capital expenditure of RM171mil for the upcoming FiT assets. 'The gross equity portion of the capital expenditure capex, estimated at RM34mil, should be manageable considering the group's financial year 2027 (FY27) gross cash of RM120mil,' TA Research pointed out. The research house added it would make no changes to earnings projections as the assets are only expected to come onstream in FY29. It said it maintained a 'buy' call with an unchanged target price of RM1.38 'We continue to like Samaiden as one of the key beneficiaries of an upcycle in RE plant-up, underpinned by a solid order book, strong net cash position and secured pipeline of RE assets to boost recurring income,' it said. TA Research said some of the catalysts include Samaiden's Large Scale Solar 5 (LSS5) and LSS5+ engineering, procurement, construction and commissioning contract awards as well as its Corporate Renewable Energy Supply Scheme. The research house noted the generation asset wins under LSS5+ and CRESS are also catalysts. Meanwhile, TA Research said risks include a sharp rise in raw material costs such as solar modules and delays in project implementation.
New Straits Times
4 days ago
- New Straits Times
PublicInvest initiates HE Group at 'Neutral', sets target price at 37 Sen
KUALA LUMPUR: PublicInvest Research has initiated coverage on HE Group Bhd, an electrical engineering service provider, with a "Neutral" rating and a target price of 37 sen. The target price is based on 12 times earnings per share for financial year 2026 (FY26), reflecting a 25 per cent discount to industry peers and the Kuala Lumpur Construction Index, given HE Group's smaller market capitalisation and lack of diversification in earnings. Listed on the ACE Market of Bursa Malaysia since Jan 30 last year, the company is currently seeking a transfer to the Main Market, aiming to elevate its corporate profile. The company specialises in power distribution systems for end-user premises and boasts an established client base, particularly among multinational corporations in the semiconductor, medical device and electronics manufacturing sectors. Despite its solid track record, HE Group has yet to secure a significant foothold in the data centre (DC) space, an area it is actively targeting. Leveraging its expertise in substation development and industrial power systems, the company is positioning itself to tap into Malaysia's growing DC industry, which is closely intertwined with the semiconductor sector. "The growing DC industry in Malaysia is expected to drive demand for advanced semiconductor chips, creating a connection between these two critical sectors that are important to HE Group. "Renewable energy (RE) sector also presents an emerging opportunity, as supportive government policies accelerate RE adoption, particularly driving interest in battery energy storage systems. "HE Group is able to leverage its expertise in power distribution system for the RE industry as its strong fundamental knowledge in energy delivery closely aligns with the technical demand for BESS projects," PublicInvest added. The firm expects a three-year net profit compound annual growth rate of six per cent for the period FY24 to FY27, driven by stable contribution from the electrical equipment hook-up and retrofitting and power distribution system segments. It currently holds an outstanding orderbook of RM68.7 million and is eyeing RM50 million in replenishment for FY25, with a tender book valued at RM675 million. PublicInvest, however, flagged several key risks, including the highly fragmented mechanical and electrical industry, intensifying competition and macro challenges stemming from global trade tensions and cyclical downturns in end-user industries. "We like HE Group's proven execution in the semiconductor space and believe its skillsets are transferable to the DC segment. "However, without clear visibility on job wins in new verticals and amid external headwinds, we are cautious in the near term," the firm said.
The Star
5 days ago
- The Star
Big bets on Bess
AS the market awaits the award of the large scale solar 5+ (LSS5+) programme, strong interest is also building around the country's inaugural tender for battery energy storage systems (Bess), which was launched late last year. Dubbed MyBeST, the initiative is structured as a two-stage bidding process and targets 400MW of battery power capacity with 1,600MWh of energy storage, slated to begin full operation by 2026/2027.
