KUALA LUMPUR: Hong Leong Investment Bank (HLIB) research has revised its earnings projections for Solarvest Holdings Bhd for the fiscal years 2025 and 2026 (FY25/FY26), increasing them by 6.3 per cent and 0.8 per cent respectively.
According to the investment bank's research note, it anticipates that Solarvest's performance could enhance with future advancements in the Large Scale Solar 5 (LSS5) initiative and significant private projects.
"Looking ahead, Solarvest is set to continue its strong performance in financial year 2024 (FY24), benefiting from a significant influx of project opportunities.We anticipate a substantial increase in the order book in the near future, with potential wins totaling approximately RM1 billion," it said.
HLIB research said the Corporate Green Power Programme (CGPP) will expand the company's asset portfolio to around 111MWp in the coming years, excluding Powervest, which has secured 116MWp.
Furthermore, Solarvest has been selected by Gentari Renewables Sdn Bhd to install solar power systems at more than 300 Petronas stations, amounting to a total solar capacity of 5.4MWp.The completion of these systems is anticipated by 2027."While this news alone may not greatly impact the company's fundamentals, we view it positively as it could lead to more opportunities, such as installing solar systems at the remaining Petronas stations, potential collaborations in electric vehicle (EV) charging, and better prospects in the region by tapping into Gentari's global network," it said.
HLIB research has raised Solarvest's target price from RM1.68 to RM1.80 while affirming a 'Buy' recommendation on the company."We like the stock for its strong position within the growing domestic solar industry, regionalised operations and strong business partners."We see further upside risks coming from performance in LSS5 and private project developments," it added.