Samaiden Group Berhad - Second LSS Win
Wed, 21-May-2025 07:38 am
by Tan Sue Wen • Apex Research

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SAMAIDEN (0223)

Target Price (RM)

1.71

Recommendation

Buy

  • Samaiden secured a RM45m EPCC contract for a 9.99MWac LSS5 solar PV project in Kulim, Kedah, set for completion by July 2027.

  • This marks Samaiden’s second LSS win YTD, totalling RM153.6m, supporting strong orderbook replenishment from LSS5’s 2GWac opportunities. We believe the 10% target of market share is achievable, backed by a solid track record in LSS projects and net cash position.

  • Reaffirmed BUY recommendation with unchanged target price of RM1.71, based on sum-of-parts (SOP) valuation, and appraised with three-star ESG rating.

 

LSS5 win. Samaiden has secured an EPCC contract valued at RM45m from PAXS Renewables for a 9.99MWac LSSPV project in Mukim Padang Cina, Kulim, Kedah. The project, part of the Large-Scale Solar 5 (LSS5) programme under Category 1 (1 MWac to <10 MWac), is set to take two years and one month, with COD targeted by 12 Jul 2027.

 

Our Take. We view the contract positively, as it should sustain Samaiden’s earnings growth through FY28F. Assuming an 8% PBT margin, this could yield an annual PBT of RM3.6m, representing 8% of our forecasted Group PBT in FY25F. Following these recent contract wins, we estimate that the unbilled order book stands at RM553.7m, representing 2.4x its FY24 revenue. Financing will not be an issue considering Samaiden’s net cash position as at 2QFY25.

 

Outlook. This is Samaiden’s second LSS EPCC contract win YTD, with a combined value totalling RM153.6m. We believe orderbook replenishment will continue primarily from LSS5, considering utility-scale solar projects typically materialise within six months of developer appointment. Achieving the 10% target of LSS5’s 2GWac EPCC opportunities remains achievable, backed by a proven track record and a robust balance sheet with a net cash position.

 

Earnings revision. No changes, as the latest job win falls within our FY25F orderbook replenishment assumption of ~RM650m.

 

Valuation & Recommendation. We maintain our BUY recommendation with an unchanged TP of RM1.71 based on sum-of-parts (SOP) and appraised with three-star ESG rating. We favour Samaiden for its (i) expertise in ground-mounted solar PV projects, (ii) industry-leading gearing with net cash position as of 2QFY25, and (iii) strategic focus on bioenergy solutions, which sets it apart from other solar EPCC players.

 

Risks. Increase in solar module costs. Inability to complete projects in time. Intense market competition.

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