Analyst ups Solarvest earnings forecast, raises target price to RM2.28
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.
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