Solarvest aiming for more RE contracts

by | Jul 24, 2021 | Business, LOCAL | 0 comments

Investor interest in Solarvest Holdings Bhd’s shares continue to gain ground following its recent large scale solar four (LSS4) job wins and by the counter’s attractive valuation which has seen prices rise over the last week.

An analyst commented that he was optimistic about Solarvest’s growth prospects over the longer term as sustainable energy gains traction in the domestic economy which should witness the company stand a good chance to win more Renewable Energy (RE) contracts.

The fact that the company is involved in the RE business puts it in a good position to be poised for growth because of the increasing emphasis on sustainable energy worldwide.

Solarvest recently announced it had secured the main engineering, procurement, construction and commissioning (EPCC) contract for a 20.76MW large scale solar photovoltaic plant in Kulim, Kedah worth RM87.5 million. This was its second LSS4 year-to-date.

Early this month the company bagged a RM43 million EPCC job for a 10.95MW solar plant in Kerian, Perak from MK Land Holdings Bhd.

While Solarvest’s earnings for the first half of its financial year ending March 31, 2022 is expected to be affected by stricter lockdown measures in Malaysia amid the high number of Covid-19 cases, potential contract wins is a positive sign.

There are expected to be more LSS4 EPCC contract flows in the coming months as the group continues to progress in its discussions with other shortlisted LSS4 bidders. A brokerage had imputed about RM600 million worth of LSS4 EPCC job wins in its forecast.