Northern Solar Holdings Berhad Q4 2026 Results: Strong Growth, Solid Prospects, and Main Market Ambitions

Key Highlights from the Q4 2026 Unaudited Financial Report

• Revenue for FY2026 surged 33.2% year-on-year to RM113.0 million, driven by higher project delivery volume, especially in EPCC of solar PV systems.
• Profit before tax (PBT) climbed 27.9% to RM21.8 million (from RM17.1 million a year ago), while profit after tax (PAT) rose 34% to RM15.3 million.
• Net assets per share increased from RM0.17 to RM0.21, reflecting improved balance sheet strength.
• Cash and bank balances remain robust at RM45.3 million, albeit lower than the previous year due to investments in plant and equipment and working capital requirements.
• Recently secured EPCC contracts worth RM119.38 million, marking a major step into large-scale solar development.
• Proposed transfer to the Main Market of Bursa Malaysia underway, application submitted to Securities Commission Malaysia on 30 March 2026.

In-Depth Financial Performance Analysis

Quarterly and Full Year Review

For the fourth quarter ended 31 March 2026, Northern Solar Holdings Berhad reported revenue of RM20.7 million, a marginal increase from RM20.6 million in the same quarter last year. The Group’s Q4 PBT jumped to RM5.0 million from RM2.4 million previously, largely due to the absence of one-off listing expenses that impacted the prior year, though this was partially offset by higher administrative costs including increased staff and directors’ remuneration, as well as depreciation and general overheads.

Full-year revenue reached RM113.0 million, up from RM84.9 million, reflecting a 33.2% growth, primarily led by higher project execution in the engineering, procurement, construction, and commissioning (EPCC) segment. PAT for FY2026 was RM15.3 million, up from RM11.4 million, supported by higher GP margins and disciplined cost management.

Segmental Breakdown

• EPCC of solar PV systems: RM109.3 million (96.7% of total revenue)
• Sale of electricity (solar generation): RM2.3 million
• Sale of renewable energy certificates (REC): RM1.09 million (new revenue stream)
• Operations & Maintenance services: RM0.29 million

The dominance of the EPCC segment is clear, but the company has started generating revenue from RECs, signaling a move towards more recurring and diversified income streams.

Balance Sheet & Cash Flow Position

• Total assets: RM123.9 million (up from RM97.1 million)
• Plant and equipment investment: RM21.1 million (up from RM12.3 million)
• Net cash used in investing activities: RM14.9 million, reflecting heavy capital expenditure for future growth
• Operating cash flow: RM2.4 million, lower than last year due to increased working capital needs for project ramp-up
• Borrowings: RM10.3 million, stable compared to last year

The company’s financial position remains strong, with significant investments in new equipment to support growth and a healthy cash buffer.

Material and Potentially Price-Sensitive Developments

1. Major New EPCC Contract Wins:
   • Northern Solar has secured new EPCC contracts valued at RM119.38 million, marking its expansion into large-scale solar projects. This is expected to significantly bolster future revenue and strengthen its market position.
2. Proposed Transfer to Main Market:
   • The company has announced its intention and submitted an application to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia. The move, if approved, will enhance its visibility, attract a broader investor base, and potentially re-rate the stock.
3. Strong Industry Outlook:
   • Malaysia’s National Energy Transition Roadmap (NETR) targets 40% renewable energy usage by 2035 and 70% by 2050, creating a robust pipeline for solar investments. The government’s LSS6, CRESS, SELCO, and ATAP programs are expected to generate substantial opportunities for the company in both utility-scale and commercial/industrial segments.
4. New Recurring Revenue Streams:
   • The company has started generating revenue from the sale of renewable energy certificates and expects further growth as more businesses seek ESG-compliant solutions.
5. Healthy Financials and No Outstanding Litigation:
   • There are no material litigation issues, significant contingent liabilities (other than standard bank guarantees), or unplanned capital commitments. No dividends were declared for the quarter.

Comparisons and Key Ratios

• Quarter-on-quarter revenue declined 42.6% from the preceding quarter (RM36.1 million to RM20.7 million), mainly due to timing of project completions and initiation of new contracts. This is typical in project-based businesses.
• Gross profit margin in Q4: 40.1% (RM8.3 million GP on RM20.7 million revenue), reflecting healthy project execution.
• Basic and diluted EPS for FY2026: 3.86 sen (up from 3.37 sen last year).
• Effective tax rate: 30.0%, higher than the statutory rate due to non-allowable expenses and prior year under-provision.

Outlook and Prospects

The Board is confident that with its robust order book, expanding portfolio in recurring solar assets, and the positive industry outlook, the Group’s performance in FY2027 will remain satisfactory. Key focus areas include:

• Efficient project delivery and securing new contracts
• Expanding recurring income from solar asset ownership
• Leveraging new business segments such as REC sales and O&M
• Capitalizing on supportive government policies and rapid adoption of solar technology

Conclusion: Potential Share Price Catalysts

• Major contract wins and expansion into large-scale solar could drive significant revenue and earnings growth.
• Potential transfer to the Main Market is a likely re-rating catalyst, improving liquidity and institutional investor interest.
• Strong financial position and recurring revenue streams offer downside protection and long-term value for shareholders.
• Industry tailwinds and policy support further underpin future growth prospects.

Disclaimer: This article is based on Northern Solar Holdings Berhad’s unaudited interim financial report for the quarter ended 31 March 2026 and is intended for informational purposes only. Investors should do their own research and consult professional advisors before making investment decisions. Past performance is not indicative of future results.

Laporan Kewangan Suku Keempat 2026 Northern Solar Holdings Berhad: Pertumbuhan Kukuh dan Prospek Cerah

Sorotan Utama Laporan Kewangan Suku Keempat 2026

• Hasil tahun kewangan 2026 meningkat 33.2% kepada RM113.0 juta, dipacu oleh jumlah pelaksanaan projek yang lebih tinggi, terutamanya dalam EPCC sistem PV solar.
• Keuntungan sebelum cukai (PBT) melonjak 27.9% kepada RM21.8 juta, sementara keuntungan selepas cukai (PAT) meningkat 34% kepada RM15.3 juta.
• Aset bersih sesaham meningkat daripada RM0.17 kepada RM0.21, mencerminkan kedudukan kewangan yang bertambah kukuh.
• Tunai dan baki bank kekal sihat pada RM45.3 juta walaupun ada pelaburan besar dalam aset dan keperluan modal kerja.
• Kontrak EPCC baharu bernilai RM119.38 juta telah diperoleh, membuka laluan kepada pembangunan solar berskala besar.
• Permohonan pindah ke Pasaran Utama Bursa Malaysia sedang berjalan, permohonan telah dihantar kepada Suruhanjaya Sekuriti Malaysia pada 30 Mac 2026.

Analisis Prestasi Kewangan Terperinci

Ulasan Suku dan Tahunan

Untuk suku keempat, syarikat merekodkan hasil RM20.7 juta, meningkat sedikit berbanding RM20.6 juta pada suku sama tahun lalu. PBT suku ini melonjak kepada RM5.0 juta daripada RM2.4 juta, terutamanya kerana tiada lagi kos penyenaraian yang wujud tahun lalu. Namun begitu, kos pentadbiran meningkat.

Untuk tahun penuh, hasil mencecah RM113.0 juta, naik daripada RM84.9 juta, dengan PAT meningkat kepada RM15.3 juta. Ini didorong oleh pertumbuhan dalam segmen EPCC dan pengurusan kos yang berdisiplin.

Pecahan Segmen

• EPCC sistem PV solar: RM109.3 juta (96.7% daripada hasil keseluruhan)
• Jualan elektrik (solar): RM2.3 juta
• Jualan sijil tenaga boleh diperbaharui (REC): RM1.09 juta (aliran pendapatan baharu)
• Perkhidmatan operasi & penyelenggaraan: RM0.29 juta

Syarikat kini mula menjana pendapatan daripada jualan REC, menandakan usaha ke arah pendapatan berulang dan lebih pelbagai.

Kedudukan Kewangan & Aliran Tunai

• Jumlah aset: RM123.9 juta (naik dari RM97.1 juta)
• Pelaburan dalam loji dan peralatan: RM21.1 juta (naik dari RM12.3 juta)
• Tunai bersih untuk aktiviti pelaburan: RM14.9 juta (mencerminkan perbelanjaan modal untuk pertumbuhan masa depan)
• Aliran tunai operasi: RM2.4 juta, lebih rendah akibat keperluan modal kerja lebih tinggi
• Pinjaman: RM10.3 juta, stabil berbanding sebelumnya

Kedudukan kewangan kukuh dengan pelaburan besar untuk menyokong pertumbuhan masa depan dan tunai yang sihat.

Perkembangan Penting & Sensitif Harga Saham

1. Kontrak EPCC Baharu:
   • Kontrak EPCC bernilai RM119.38 juta baru sahaja dimenangi, memperluas ke segmen solar berskala besar. Ini dijangka melonjakkan hasil dan memperkukuh kedudukan pasaran syarikat.
2. Pindah ke Pasaran Utama:
   • Syarikat telah mengumumkan dan menghantar permohonan untuk berpindah dari Pasaran ACE ke Pasaran Utama Bursa Malaysia. Jika diluluskan, langkah ini dijangka meningkatkan profil syarikat dan menarik lebih ramai pelabur institusi.
3. Prospek Industri Kukuh:
   • Pelan Peralihan Tenaga Kebangsaan (NETR) Malaysia menyasarkan 40% tenaga boleh diperbaharui menjelang 2035 dan 70% menjelang 2050, memberi peluang besar untuk pelaburan solar. Program LSS6, CRESS, SELCO dan ATAP dijangka menjana banyak peluang untuk syarikat dalam segmen utiliti dan komersial/industri.
4. Aliran Pendapatan Berulang Baharu:
   • Pendapatan dari jualan sijil tenaga boleh diperbaharui dijangka terus berkembang selari dengan permintaan ESG syarikat korporat.
5. Kedudukan Kewangan Sihat & Tiada Litigasi Material:
   • Tiada isu litigasi, liabiliti berkemungkinan, atau komitmen modal yang material. Tiada dividen diumumkan untuk suku ini.

Perbandingan dan Nisbah Utama

• Hasil suku ke suku turun 42.6% berbanding suku sebelumnya, disebabkan masa pelaksanaan projek yang tipikal dalam perniagaan berasaskan projek.
• Margin keuntungan kasar suku keempat: 40.1%
• EPS asas dan cair tahun penuh: 3.86 sen (naik dari 3.37 sen tahun lalu).
• Kadar cukai efektif: 30.0%, lebih tinggi dari kadar statutori akibat beberapa perbelanjaan tidak dibenarkan dan peruntukan cukai tahun sebelumnya.

Prospek

Lembaga Pengarah yakin dengan buku pesanan kukuh, portfolio solar yang berkembang, dan prospek industri positif, prestasi kumpulan untuk tahun kewangan 2027 akan terus memuaskan. Fokus utama termasuk:

• Penyampaian projek yang cekap dan memenangi kontrak baharu
• Meluaskan pendapatan berulang daripada pemilikan aset solar
• Memanfaatkan segmen baharu seperti jualan REC dan O&M
• Mengambil peluang daripada dasar kerajaan dan teknologi solar terkini

Kesimpulan: Pemangkin Harga Saham

• Kontrak besar dan pengembangan ke solar berskala besar boleh membawa pertumbuhan hasil dan keuntungan yang ketara.
• Pindah ke Pasaran Utama berpotensi menjadi pemangkin rerating, meningkatkan kecairan dan minat pelabur institusi.
• Kedudukan kewangan kukuh dan aliran pendapatan berulang memberi perlindungan dan nilai jangka panjang kepada pemegang saham.
• Dorongan industri dan dasar kerajaan terus menyokong pertumbuhan masa depan.

Penafian: Artikel ini berdasarkan laporan kewangan interim tidak diaudit Northern Solar Holdings Berhad bagi suku berakhir 31 Mac 2026 dan hanya bertujuan untuk makluman sahaja. Pelabur perlu membuat kajian sendiri dan mendapatkan nasihat profesional sebelum membuat keputusan pelaburan. Prestasi lalu tidak menjamin keputusan masa depan.

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