Maybank Investment Bank Berhad
Date of Report: August 21, 2025
Solarvest Holdings: Asset-Backed Growth Powers Malaysia’s Renewable Energy Champion

Introduction: Solarvest Holdings—Riding the Renewable Energy Wave

Solarvest Holdings Berhad (SOLAR MK) stands out as a leading player in Malaysia’s fast-growing renewable energy sector, driven by robust government policies and a strong pipeline of projects. Maybank Investment Bank’s latest research maintains a BUY rating, raising the target price to MYR2.64, underpinned by diversified growth in asset ownership, manufacturing, and regional expansion.

Key Takeaways: Why Solarvest Is in the Spotlight

• BUY rating reaffirmed, with a revised target price of MYR2.64 (implying c.25x CY26E PER).
• 1QFY26 results broadly in line, with core net profit doubling year-on-year.
• Orderbook remains robust at MYR1.18 billion, supporting visibility through FY28E.
• Expansion into asset ownership, manufacturing, and regional ventures enhances recurring income and risk profile.
• Government targets 70% RE in Malaysia’s energy mix by 2050, with ambitious solar and battery rollouts.

Financial Performance Deep Dive: Q1 FY26 Results

Solarvest delivered impressive year-on-year growth in the first quarter, bolstered by accelerated execution of the Corporate Green Power Programme (CGPP) and a healthy mix of engineering projects.

Segment Analysis: Diversified Revenue Streams

Solarvest’s strength lies in its ability to diversify across business segments, creating a balanced revenue profile and healthy margins.

Orderbook Strength: Multi-Year Visibility and Growth

Solarvest boasts an unbilled orderbook of MYR1.18 billion, underpinned by both large-scale solar (LSS) and commercial & industrial (C&I) projects. This provides earnings visibility through FY28E.

• LSS (Large Scale Solar): MYR918 million
• C&I/Residential: MYR264 million

Major Projects and Asset Ownership

• 50MW of LSS4 owned assets (cumulative 67.3MWp)
• 90MWac/130MWp CGPP owned assets (effective 56.3MWp)
• Newly included: 60MW LSS5, 30% stakes in SIW Manufacturing and Kee Ming Electrical, and the 30MW Brunei project

Financial Forecasts and Assumptions

Maybank has maintained FY26E forecasts and raised FY27E and FY28E earnings by 1% and 3% respectively, reflecting incremental contributions from new assets.

Valuation: Sum-of-Parts Target Price Calculation

Solarvest’s new sum-of-parts (SOP) target price reflects its broadening business model and regional reach. Key components include:

• EPCC PAT CY26E: MYR1,656.2 million (25x PER)
• 50MW LSS4 solar asset: MYR220.0 million (DCF, 25 years PPA)
• 90MW CGPP solar asset: MYR212.3 million (DCF, 21 years PPA, 43.3% stake)
• 60MW LSS5 solar asset: MYR34.7 million (DCF, 21 years PPA, 60% stake)
• SIW Manufacturing (30% stake): MYR36.0 million (acquisition price)
• Kee Ming Electrical (30% stake): MYR15.3 million (acquisition price)
• 30MW Brunei solar asset (34% stake): MYR28.1 million (DCF, 25 years PPA)
• Net debt as at Jun 2025: MYR59.0 million
• No of shares: 813.0 million
• Target price: MYR2.64

Risk Factors: What Investors Should Watch

• Slower-than-expected work progress for engineering, procurement, construction, and commissioning (EPCC) projects could delay earnings recognition.
• Rising costs of solar panels and inverters may compress project margins.
• Expansion of Malaysia’s Sales and Service Tax (SST) and China’s anti-involution policy could affect module costs, but Solarvest’s diversified capabilities and prudent cost management are expected to mitigate risks.

Company Overview: Solarvest Holdings at a Glance

Solarvest Holdings is a turnkey solar energy solution provider engaged in engineering, procurement, construction, and commissioning (EPCC) for large-scale solar PV, residential, commercial, and industrial property projects. The company also offers operations and maintenance (O&M) services.

• Market Capitalisation: MYR1.9 billion (USD453 million)
• Issued Shares: 809 million
• Major Shareholders:
  • Atlantic Blue Holdings Sdn Bhd: 21.4%
  • LIM CHIN SIU: 7.7%
  • TAN CHYI BOON: 7.2%
• 52-week High/Low: MYR2.51 / MYR1.48
• 3-month Average Turnover: USD2.1 million
• Free Float: 52.9%

Solarvest’s Multi-Year Growth Strategy

Solarvest’s future is supported by favorable government policies targeting 70% renewable energy in Malaysia’s energy mix by 2050. The rollout of LSS5/LSS5+ (4GW quota) and the Battery Energy Storage Systems (BESS) programme (400MW/1,600MWh by 2027) provides multi-year growth opportunities.

• Regional diversification with projects in Brunei and new manufacturing stakes
• Strong asset-backed recurring income
• Strategic positioning across the renewable energy value chain

Historical Performance and Share Price Trends

Solarvest’s share price has shown resilience and strong growth, outperforming the Kuala Lumpur Composite Index over various periods.

Conclusion: Solarvest—Malaysia’s Proxy for Renewable Energy Growth

Solarvest Holdings offers multi-year growth potential for investors seeking exposure to Malaysia’s renewable energy transformation. With robust financials, a diversified business model, strategic regional expansion, and strong policy support, Solarvest remains a compelling investment opportunity for those betting on the future of clean energy.

Disclosure & Analyst Contact

Nur Farah Syifaa Email: [email protected] Phone: (603) 2297 8675

About Maybank Investment Bank Berhad

Maybank Investment Bank Berhad is a leading financial research provider covering Malaysia, Singapore, Indonesia, Thailand, Philippines, Vietnam, Hong Kong, India, and London, offering deep sector expertise and industry insights.

Note: This article is based solely on the original broker report and contains no external information. All data, analysis, and opinions are presented as per the latest available research.