KUALA LUMPUR: Solarvest Holdings Bhd aims to tap more opportunities in the domestic renewable energy sector as it sees the industry to be relatively young and on an upward trajectory.
Managing director Lim Chin Siu said this translates to more pockets of opportunities for industry players like Solarvest.
Based on an independent report by Protege Associates Sdn Bhd, the total solar photovoltaic PV installed capacity in Malaysia was set to grow at a compound annual growth rate of 50 per cent during the period of 2018 to 2023.
"We foresee the domestic operating landscape to be increasingly competitive with more players entering the solar industry, given that the government is introducing more incentives to spur demand for clean energy.
"Accessibility to project financing is also improving as more and more financial institutions are starting to allocate funds for green projects. Having that in mind, we will continue to upgrade our technical capabilities and new technologies to future proof our business," Lim said at the company's listing on Bursa Malaysia’s ACE Market today.
The stock is categorised under the industrial products and services sector.
"We aim to capitalise on the growing market with the proceeds raised from this initial public offering (IPO)," Lim said.
Solarvest specialises in turnkey engineering, procurement, construction and commissioning (EPCC) services for solar PV systems
Solarvest raised a total of RM34.6 million from its IPO, of which RM19.2 million or 55.5 per cent will be utilised for its working capital to strengthen its daily operations and future projects.
A total of RM4.0 million or 11.5 per cent will be used to acquire new project machinery and equipment as well as to upgrade its information technology software and hardware.
Another RM3.0 million or 8.7 per cent will be allocated for its geographical expansion in the domestic and international markets.
The balance will be used for repayment of bank borrowings (RM5.0 million or 14.5 per cent) and listing expenses (RM3.4 million or 9.8 per cent).
Lim said the IPO was a dream come true for him and founding members of Solarvest.
"Going public is an important milestone for us, however this is just the beginning of our next chapter of growth. There is much to be done as we strive to drive higher participation and adoption of green energy here and internationally.
"We are glad to have grown alongside the renewable energy sector in Malaysia since 2012, having witnessed the shift from feed-in tariff mechanism to new enhance net energy metering scheme as well as the implementation of large scale solar programme.”
Solarvest is among the first batch of grid-tied solar power installation providers in Malaysia that has obtained the certification from Sustainable Energy Development Authority and Grid-Connected Solar Photovoltaic.
"Our immediate focus is to increase our market share in the domestic market. We are expanding our footprint in the southern region, capturing business opportunities in Negri Sembilan, Melaka and Johor.
"As for our long-term growth, we are speaking with a few potential business partners in Vietnam and Taiwan to explore for business opportunities there. The outlook is getting brighter for us and we are prepared to seize the sunny prospects ahead,” Lim said.
Solarvest registered a revenue of RM140.0 million in the first half of its year ending March 31 2020, surpassing the previous full-year revenue of RM112.2 million.
A major portion of the revenue was contributed by the turnkey EPCC segment, representing 98 per cent of total revenue.
Its first half net profit stood at RM7.8 million.
Solarvest is 45.0 per cent owned by Bursa’s Main Market-listed Chin Hin Group Bhd.
Upon completion of the IPO, Chin Hin's shareholding stood at 33.6 per cent.