Samaiden eyes bigger share of solar projects
In a post-results briefing last week, the group's management told analysts it was actively bidding for jobs to bring its a tender book to RM1.8bil.
MIDF Research said the group's order book stood at RM441.8m as of March 2024, 53% of which was for utility-scale solar projects.
'Including the three recent engineering, procurement, construction, and commissioning (EPCC) contracts for large solar projects that it secured recently and a two-month order book burn, we estimate that the current outstanding amount should be about RM650mil,' MIDF Research said..
Samaiden was recently awarded two EPCC contracts under the fifth phase of the government's Large Scale Solar (LSS5) initiative – a RM100.7mil contract for a 27.60MW solar farm in Pasir Mas, Kelantan, and a RM45mil contract for a 9.99MW solar farm in Kulim, Kedah.
It also won a RM108.6mil contract for a 29.99MW solar farm in Bestari Jaya, Selangor, which was the final LSS4 project
It is currently bidding for projects under the upcoming LSS5+ and LSS6 rounds, with the LSS5+ results expected by the end of this month.
According to the research house, Samaiden is exploring growth through rooftop solar installations, especially under the recently introduced Community Renewable Energy Aggregation Mechanism or CREAM.
The initiative allows residential rooftops to be leased for solar generation. With a potential electricity tariff hike in July, Samaiden anticipates increased demand from commercial and industrial customers for rooftop solutions.
MIDF Research said Samaiden is on strong footing.
'Samaiden has a net cash position at RM104.8mil, which provides a strong runway for the group to participate in potential solar photovoltaic investments with favourable recurring income' it added.
While EPCC still dominates its revenue, Samaiden aims to grow recurring income via power-generation assets, which command higher margins.
'Samaiden sees prospects of margin improvement going forward as the group's power-generation assets, which entail much higher margins than its typical EPCC business, kick in within the next few years,' TA Research said.
TA Research maintained a 'buy' call with a target price of RM1.38 on Samaiden, highlighting its strong order book, net cash status, and project pipeline.
MIDF Research also reiterated a 'buy' rating with a higher target price of RM1.59, reflecting optimism in the group's long-term growth driven by LSS and CGPP developments.
Samaiden stands out as a prime beneficiary of Malaysia's energy transition. With strong order flows, earnings visibility, and growing recurring income from its renewable energy assets, the group is well-positioned to deliver value in the coming years.
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