Solarvest earnings beat expectations as growth pipeline strengthens

KUALA LUMPUR: Solarvest Holdings Bhd’s first-quarter results for the financial year ended June 30, 2025 (1Q26) came in above expectations, said Hong Leong Investment Bank Bhd (HLIB).

It said Solarvest’s core net profit of RM16.9 million on revenue of RM137.7 million was lifted by stronger-than-anticipated engineering, procurement, construction and commissioning (EPCC) execution.

“We expect EPCC margins to be sustained in the coming quarters, as secured projects remain unaffected by recent cost pressures,” it said in a note.

It added that the continued execution of Corporate Green Power Programme (CGPP) projects will drive the bulk of revenue, while newly secured large-scale solar (LSS) EPCC projects could kick in from 4Q26.

HLIB said Solarvest has set ambitious targets of RM1 billion in revenue and RM3 billion in unbilled orderbook, driven by CGPP execution, LSS progress in the second half and a substantial LSS and battery energy storage system tender pipeline.

It also noted that recurring income is expanding, with effective ownership of 336 megawatt-peak in LSS projects expected to generate more than RM90 million in revenue once commercial operations begin.

HLIB maintained its “Buy” call on Solarvest with a target price of RM3.18.

© New Straits Times Press (M) Bhd

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