Analyst ups Solarvest earnings forecast, raises target price to RM2.28
KUALA LUMPUR: Maybank Investment Bank (Maybank IB) has raised its earnings forecasts for Solarvest Holdings Bhd, citing higher assumed annual orderbook replenishment of RM1 billion and stronger contributions from the company's associates.
The firm raised its estimations for financial year 2026 (FY26) and FY27 by 23 per cent and 22 per cent, respectively.
It also introduced projections for FY28, noting improved earnings visibility supported by Solarvest's strong project execution capabilities and growing share of recurring income.
In tandem with the upward revision, the firm raised its target price for Solarvest to RM2.28 per share, up from RM2.14 previously, while reiterating its 'Buy' recommendation.
The upgrade follows Solarvest's strong financial performance for FY25, where core net profit came in above expectations — achieving 108 per cent of both Maybank IB's and consensus forecasts.
Solarvest Holdings Bhd reported a net profit of RM20.53 million for the fourth quarter ended March 31, 2025, nearly tripling from RM7.73 million a year earlier.
Revenue for the quarter surged 132 per cent year-on-year to RM224.87 million, driven by increased roll-outs of utility-scale solar projects under the Corporate Green Power Programme.
For the full FY25, the group posted a net profit of RM51.94 million, up 59 per cent from the previous year, while revenue rose eight per cent to RM536.82 million.
"The earnings beat was mainly driven by stronger-than-expected engineering, procurement, construction and commissioning margins, despite some revenue shortfall in the EPCC segment, which is now to be recognised in FY26," the firm added.
Maybank IB said Solarvest's outstanding orderbook stood at RM1.24 billion as of end-March 2025, which is expected to be progressively recognised over the FY26 to FY28 period.
"Under its Powervest programme, it has secured 129 megawatt-peak in corporate power purchase agreements, which are expected to contribute around RM50.8 million in annual recurring revenue after completion, expected in the next 12 to 18 months," it said.
Solarvest is actively pursuing opportunities under the upcoming large scale programmes LSS5+ and LSS6 tenders, as well as initiatives such as Net Energy Metering 3.0, New Enhanced Dispatch Arrangement, Battery Energy Storage Systems and Self-consumption.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
2 hours ago
- Barnama
e-Invoice Implementation For Revenue Below RM5 Mln Deferred To Jan 1, 2026
KUALA LUMPUR, June 5 (Bernama) -- The Inland Revenue Board (LHDN) today announced that the implementation phase for e-invoices for taxpayers with annual income or sales exceeding RM1 million but not exceeding RM5 million has been postponed to Jan 1, 2026. In a statement here, LHDN also announced that taxpayers with an annual income or sales below RM500,000 are exempted from the implementation of the e-Invoice system. "The implementation phase for taxpayers with annual income or sales up to RM1 million has been postponed to July 1, 2026," LHDN said. The board added that the decision was made after the government recognised the commitments of taxpayers, particularly Micro, Small, and Medium Enterprises (MSMEs), in meeting e-invoice legal requirements, which necessitate adequate preparation time and face numerous implementation challenges. The statement said that, in line with this decision, a new timeline for the e-invoice implementation phases has been established with Phase 3 targeting taxpayers with annual income or sales exceeding RM5 million but not exceeding RM25 million coming into effect on July 1, 2025. LHDN noted that Phase 4 will involve taxpayers with annual incomes or sales exceeding RM1 million up to RM5 million and will begin on Jan 1, 2026 while Phase 5 will cover the income group of up to RM1 million and will commence on July 1, 2026. The previously announced six-month grace period will also apply to these new phases, the agency said. It stressed that during this period, taxpayers will be permitted to issue consolidated e-invoices for all transactions, including self-billed e-invoices. Necessary details, it said, can be included in the 'Product or Service Description' field.
The Sun
4 hours ago
- The Sun
Paramount aims to maintain momentum after record high sales of RM1.4b in FY24
KUALA LUMPUR: Paramount Corporation Bhd is poised to build on the momentum of record high property sales amounting to RM1.4 billion in 2024, a 24% increase compared to 2023, for the current financial year. Group CEO and director Jeffrey Chew Sun Teong said the milestone of achieving the highest annual sales in its history underlines strong market demand and the company's effective project pipeline. In addition to the record-breaking achievement, Paramount's unbilled sales rose by 12% to RM1.6 billion, providing healthy earnings visibility moving forward. 'While the overall take-up rate was not exceptionally high, the company views this as a natural result of its large number of project launches in 2024. The company remains unfazed, noting that developments with longer sales periods are expected to register lower take-up rates initially, especially when launched at scale,' Chew told reporters after the Paramount's annual general meeting today. Moving forward, Paramount is expected to sustain its growth trajectory into 2025, supported by a robust pipeline of ongoing projects stemming from a record RM2.2 billion worth of property launches in 2024. 'This marked the highest launch value in the company's history, with many of the developments continuing to drive sales into the current year. The launches were well diversified, with 72% comprising high-rise units, 27% landed properties and the remaining 1% commercial. 'Spread across multiple locations, the breadth of projects reflects Paramount's strategic focus on maintaining a balanced portfolio, both in terms of product mix and geographical distribution, helping to ensure resilience amid varying market conditions,' Chew said. Paramount achieved revenue of RM1 billion in FY24, a 3% increase from FY23. The group's profit before tax (PBT) rose by 20% to RM156.9 million compared to RM130.2 million in FY23 on the back of sustained revenue from the property segment and dividend income from its investment in another property developer. Profit attributable to ordinary equity holders grew 24% to RM102.4 million from RM82.8 million in FY23. In FY24, the property segment achieved a record high PBT of RM145 million, contributing 92.4% of the group's total PBT, supported by revenue of RM965.3 million. The investment and other segments saw strong improvements, largely driven by the group's stake in Eco World International Bhd (EWI). The coworking segment reported an 80% jump in revenue to RM23.5 million (including RM5.2 million in intersegment revenue). However, PBT declined to RM700,000 from RM2 million achieved in FY23, primarily due to the absence of a one-off impairment reversal that was recognised in FY23. As of Dec 31, 2024, total assets stood at RM3.1 billion, up from RM3 billion a year earlier. Total liabilities rose to RM1.6 billion from RM1.3 billion. Chew said, 'Paramount's gearing level rose slightly in 2024, mainly due to higher borrowings and financing related to its investment in EWI. The company also refinanced its perpetual debt during the year, contributing to the increase. 'Gearing level is currently higher due to the structure of its financial instruments and recent refinancing activities. Despite this, the company has maintained a consistent dividend payout track record, distributing at least 38% of its profits annually over the past decade. 'In total, shareholders have received approximately RM1.15 in dividends over 10 years, exceeding the company's current share price of under RM1.10.' With RM2.2 billion worth of launches in 2024, Paramount's portfolio remains well diversified, comprising 72% high-rise developments, 27% landed properties and 1% commercial projects. This broad spread across product types and locations provides resilience against unforeseen challenges. The company believes this balanced approach will help sustain overall performance throughout the year, even if individual projects face temporary setbacks.
New Straits Times
5 hours ago
- New Straits Times
Johor Port invests RM72.3mil in new cranes
JOHOR BAHRU: Johor Port Bhd (Johor Port) has formalised a RM72.3 million purchase of four level luffing cranes with supplier Sany Marine Heavy Industry Co Ltd. In a statement today, Johor Port said the procurement is part of a broader RM1 billion capital expenditure enhancement plan to modernise its port facilities and to support future growth. "The new cranes with their improved lifting performance, improved reach and enhanced durability will improve berth productivity, reduce vessel turnaround time, and deliver a more seamless and efficient cargo-handling experience," the statement said. Johor Port chief executive officer Md Derick Basir and Sany Marine general manager for overseas sales Tony Tang were signatories at yesterday's signing ceremony. Md Derick said: "This investment is a clear demonstration of our commitment to meet the growing expectations of our diverse customer base. "We are focused on enhancing productivity, increasing operational efficiency and reinforcing our position as the port of choice in the southern region," he said. Johor Port is located on 1,000 acres, of which 660 acres are designated as a free trade zone. It is part of utility and infrastructure group MMC Corporation Bhd.
