PETALING JAYA: Solarvest Holdings Bhd ’s recurring income generated from asset ownership is expected to rise from 1% in financial year 2022 (FY22) to 9% in FY26 with the commencement of the large-scale solar or LSS4, Corporate Green Power Programme (CGPP) and Powervest projects.
Its solar asset portfolio is expected to have an export capacity of about 200MWp in FY26, generating about RM80mil recurring revenue.
Phillip Research is forecasting a 52% compounded annual growth rate in profit for FY23-FY26, driven by higher order book replenishment from CGPP awards and commercial operations of its solar assets.
Solarvest also plans to expand into the solar photovoltaic (PV) market outside of Malaysia by venturing into markets such as Taiwan, Vietnam, the Philippines and Indonesia.
Solarvest’s order book currently stood at RM242mil with an earnings visibility until FY25.
The research house imputed a higher RM1bil order book replenishment target in FY25, with 80% estimated to be driven by the upcoming CGPP project.
Philip Research has a “buy” rating on Solarvest with a target price of RM1.80 a share. It is the prime proxy of Malaysia’s target to increase renewable energy generation capacity to 70% by 2050.