Solar growth continues to spur Samaiden
PETALING JAYA: Analysts continue to like clean-energy company Samaiden Group Bhd as it is as one of the prime beneficiaries of an upcycle in renewable energy (RE), underpinned by a solid order book.
TA Research also noted that it has a strong net cash position and has secured a pipeline of RE assets to boost recurring income.
'From a valuation standpoint, Samaiden is trading at undemanding 17 times its financial year ending June 30, 2026 (FY26) price-earnings ratio, below its historical mean of 20 times,' said TA Research, which maintained its 'buy' call on the company.
Samaiden recently announced that it had secured a RM108.6mil contract to undertake the design, engineering, procurement, construction, testing and commissioning (EPCC) of a 29.99 megawatt alternating current (MWac) large scale solar power plant in the central region of Peninsular Malaysia.
The project is targeted for completion by Jan 15, 2026.
'The contract value of RM108.6mil translates into RM3.6mil per MWac, which in our opinion, is an attractive price relative to other recent utility-scale solar power plant EPCC contracts while also taking into consideration record-low solar module prices currently.'
'Given a targeted commissioning by next January, we reckon the bulk of the contract will be recognised in the first half of FY26,' the research house said.
Additionally, it noted that Samaiden also announced the mutual termination of a prior EPCC contract for a 10MW biomass power plant in Terengganu.
The project has been long delayed since its award in November 2020 given hiccups in securing funding on the part of the developer. The contract was originally valued at RM115.6mil.
On a net basis, taking into consideration both the latest large scale solar power plant contract win and biomass power plant contract termination, TA Research said it estimated a 1.4% reduction to Samaiden's order book to RM509mil from RM516mil as of end-December 2024, before taking into account order book burn-rate in the third quarter of FY25.
'We now estimate over 80% of Samaiden's order book comprises utility-scale solar contracts with the rest consisting of rooftop solar and operations and maintenance contracts.'
TA Research said it had trimmed its FY25-FY27 earnings estimates for Samaiden by between 4.5% and 8.3% as it omits previously projected contribution from the terminated biomass project.
It maintained its 'buy' call on the company at a revised target price of RM1.56 from RM1.63 previously.
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