Broker: Maybank Investment Bank Berhad
Date of Report: May 22, 2025

Solarvest Holdings (SOLAR MK): Surging Ahead with Record Earnings and Expanding Orderbook

Exceptional FY25 Performance Sparks Upgraded Outlook

Solarvest Holdings, a leading Malaysian player in the renewable energy space, has delivered a robust set of results for FY25, outperforming both analyst and market expectations in terms of core net profit. The company’s strong execution of the Corporate Green Power Programme (CGPP), alongside maiden contributions from its new associates, has firmly positioned it for sustained growth. Maybank Investment Bank Berhad maintains a BUY recommendation, raising the target price to MYR2.28, up from the previous MYR2.14.

Key Highlights: Q4 and Full-Year FY25 Results

• FY25 Core Net Profit: MYR51.9 million, up 61% year-on-year.
• Q4 FY25 Net Profit: MYR20.5 million, marking a 166% increase YoY and 43% QoQ.
• Q4 Revenue: MYR224.9 million, surging 132% YoY, driven by CGPP project execution.
• Orderbook as of end-March 2025: MYR1.24 billion, ensuring strong earnings visibility through FY28E.
• Maiden Associate Contributions: Share of profit of MYR2.6 million from SIW Manufacturing (30%) and Kee Ming Electrical (30%).

CGPP Execution and Associate Contributions Drive Growth

Solarvest’s outperformance in FY25 was predominantly due to exceptional progress in its CGPP projects. The segment delivered scale and efficiency, with fourth quarter revenue jumping 132% year-on-year. While there was a slight 0.5ppt YoY dip in EPCC (Engineering, Procurement, Construction & Commissioning) margins to 12.1%, overall profitability soared, supported by operational leverage.

A significant highlight for the quarter was the first-time contribution from newly acquired associates, SIW Manufacturing and Kee Ming Electrical, which jointly added MYR2.6 million in profit share. These strategic investments have diversified Solarvest’s earnings streams and reinforced its supply chain capabilities.

Orderbook at Record Highs: Visibility Through FY28

As of end-March 2025, Solarvest’s orderbook reached MYR1.24 billion, underpinned by wins across CGPP, LSS (Large Scale Solar), and commercial & industrial contracts. This robust backlog is set to be progressively recognized through FY26 to FY28, providing a strong foundation for future earnings.

• Corporate PPAs: 129MWp secured under the Powervest programme, set to generate around MYR50.8 million in annual recurring revenue once completed over the next 12–18 months.
• Active Pipeline: Solarvest is actively bidding for LSS5+/LSS6 tenders and exploring new opportunities in NEM 3.0, NEDA, BESS, and SELCO.

Financial and Segmental Performance Breakdown

Quarterly and Annual Segment Performance

• EPCC of Solar Energy Solution: FY25 revenue at MYR459.5 million (+2.2% YoY); Q4 revenue at MYR199.5 million (over 100% YoY growth).
• O&M of Solar Energy System: FY25 revenue at MYR9.3 million (+34.7% YoY).
• Sale of Electricity (Solar): FY25 revenue at MYR26.4 million (over 100% YoY growth).
• Other Revenue: FY25 at MYR41.7 million (+73.5% YoY).

Solarvest’s Owned Solar Assets and Project Pipeline

LSS4 Owned Assets (50MWac, Cumulative 67.3MWp)

CGPP Owned Assets (90MWac/123MWp, Effective 49.5MWp)

Key Orderbook Projects

• Balance CGPP: 486MWac scheduled for COD by end-2025
• LSS5 – TNB Kuala Muda Solar Sdn Bhd: 500MWac, EPCC value MYR401m, COD by July 2027
• LSS5 – SV Flux Sdn. Bhd.: 29.99MWac, EPCC value MYR103.1m, COD by July 2027
• Residential, Commercial & Industrial: 252MWac
• Total Orderbook: MYR1,242.1m

Upgraded Forecasts and Target Price

Maybank IBG Research has revised Solarvest’s earnings forecasts upwards for FY26 and FY27 by 23% and 22% respectively, incorporating annual orderbook wins of MYR1bn and enhanced contributions from associates. FY28E forecasts are also introduced, reflecting Solarvest’s expanding recurring income base and robust execution pipeline.

The new sum-of-parts (SOP) derived price target is MYR2.28, reflecting higher earnings, increased orderbook, and the growing value of Solarvest’s project pipeline.

Financial Position and Key Ratios

• Net Gearing: Expected to drop from 55.8% in FY25 to a net cash position by FY27 and FY28.
• ROAE: Improving from 15.2% in FY24 to a projected 19.7% in FY27, before normalizing at 17.3% in FY28.
• Dividend Policy: Payout ratio of 25% anticipated from FY26E onwards, with dividends per share climbing to 2.6 sen in FY26E and 3.0 sen in FY27E and FY28E.
• Cash & Short-Term Investments: Projected to rise from MYR138.1m in FY25 to MYR431.1m in FY28E.

Risks and Sensitivities

• Potential delays in EPCC project progress could impact the timing of earnings recognition.
• Rising costs of solar panels and inverters may compress project margins.

Solarvest’s Strategic Position and Sector Outlook

Solarvest is at the forefront of Malaysia’s solar energy transition, offering turnkey EPCC solutions for large-scale solar PV, residential, commercial, and industrial property projects, as well as providing operations and maintenance services. Its strategic focus on recurring corporate PPA revenue, expansion into new renewable initiatives (NEM 3.0, NEDA, BESS, SELCO), and stake in high-growth associates position it for sector-leading growth and resilience.

• Major Shareholders: Atlantic Blue Holdings Sdn. Bhd. (20.7%), Lim Chin Siu (7.1%), Tan Chyi Boon (7.0%)
• Market Capitalisation: MYR1.3 billion (USD300 million)
• Issued Shares: 755 million
• Free Float: 53.6%

Conclusion: Robust Earnings, Expanding Pipeline, BUY Reaffirmed

Solarvest Holdings has reaffirmed its status as Malaysia’s premier solar EPCC and asset owner, with a record orderbook, strong recurring revenue growth, and prudent risk management. The upgraded BUY call and higher target price reflect confidence in management’s execution, the quality of the orderbook, and the scalability of the business model as Malaysia accelerates its renewable energy transition.