PETALING JAYA: Kenanga Research expects a strong flow of jobs for Solarvest Holdings Bhd

driven by the fifth large-scale solar (LSS5) and LSS5+ programmes with an end-2027 completion deadline.

“Based on our estimates, Solarvest stands a strong chance to secure at least 25% of the engineering, procurement, construction and commissioning (EPCC) pie, translating to RM2.5bil of the total photovoltaic system EPCC jobs under the LSS5 and LSS5+, which we estimate at RM10bil,” it said.

Recently, Solarvest’s 20%-owned consortium with Malakoff Corp Bhd

has secured a 21-year PPA for a 470 megawatt alternating current solar plant under LSS5+, slated for completion by end-2027.

“We project a lower tariff of 13 to 14 sen/kilowatt-hour, translating into an estimated project internal rate of return of 7% based on the current panel prices.

“Panel cost risk is minimal, as Solarvest had anticipated this win since mid-2025 and had pre-procured panels in advance,” Kenanga Research said.

It pointed out that with its 20% stake, Solarvest will undertake the EPCC works, which lifts the company’s financial year 2026 year-to-date job wins to RM1.8bil, lifting its outstanding order book to RM2.4bil.

The research house raised its target price to RM3.25 from RM2.71 after incorporating higher job win assumptions and the newly secured solar asset. Meanwhile, Hong Leong Investment Bank (HLIB) Research expects the EPCC contract to be awarded in full to Solarvest, as this is typical in past partial ownership projects.

“By our estimation, this development would typically yield EPCC works valued at RM1.2 to 1.4bil, effectively doubling Solarvest’s current unbilled order book of RM1.2bil,” it said.

The research house added that this quota win would boost Solarvest’s effective ownership of utility-scale solar projects by 60% to 70% to 330 MWp to 350 MWp.

“Management is guiding for financial year 2025 ending March 31, 2026, unbilled order book of RM3bil driven by LSS5 and LSS 5+ EPCC jobs coupled with projects in Borneo.”

This represents a bullish upshift in targets considering RM2bil was the previous targeted mark for FY26.

It added that the current robust Solar Energy Self-Consumption demand, ongoing Malaysia Battery Energy Storage System tenders as well as further upside from the Corporate Renewable Energy Supply Scheme post revision of system access charges will keep order book growth trend intact.

HLIB Research liked the stock for its strong position within the growing domestic solar industry, regionalised operations and strong business partners.