Samaiden Group Berhad - Three New FiT Projects
Thu, 31-Jul-2025 07:23 am
by Tan Sue Wen • Apex Research

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SAMAIDEN (0223)

Target Price (RM)

1.60

Recommendation

Buy

  • SAMAIDEN secured three bioenergy projects (18MWac installed capacity) under SEDA Malaysia’s 2025 e-bidding. All plants are expected to commence operations by the scheduled FiT start date of 25 July 2028 and will operate under a 21-year PPA from that date.

  • We view the development positively, as it provides the Group with an additional source of recurring income while establishing a more diversified PPA portfolio beyond solar.

  • We estimate that these projects will generate c.RM7.2m in annual PATMI for the Group, representing ~39% of FY25F core net profit.

  • Following these contract wins, SAMAIDEN’s total RE portfolio is estimated at 178MWac. Assuming all assets become operational by FY29F, our preliminary estimates indicate that Group total recurring PATMI could reach about RM21m.

  • After incorporating equity value from the PPAs, we derive an unchanged target price of RM1.60, based on a sum-of-parts (SOP) valuation and a three-star ESG rating. Maintain BUY.

 

18MWac FiT wins. SAMAIDEN has secured three bioenergy projects with a combined 18MWac installed capacity and 16.4MWac net export capacity under SEDA Malaysia’s 2025 e-bidding exercise. The projects consist of two biomass power plants in Tangkak, Johor and Kemaman, Terengganu, as well as a biogas power plant in Bachok, Kelantan. The biogas plant was awarded a tariff of 25.2 sen/kWh, while the biomass plants received a tariff of 28.8 sen/kWh. All plants are expected to commence operations by the scheduled FiT start date of 25 July 2028 (1QFY29) and will operate under a 21-year Feed-in Tariff (FiT) arrangement from that date.

 

Our Take. We view the development positively, as it provides the Group with an additional source of recurring income while establishing a more diversified PPA portfolio beyond solar. Assuming a capex of RM12m/MWac for biomass and RM6m/MWac for biogas, a blended tariff rate of 28.5 sen/kWh, an 80:20 debt-to-equity financing structure, and a double-digit IRR, we estimate that these projects will generate c.RM7.2m in annual PATMI for the Group, representing ~39% of FY25F core net profit. Following recent contract wins, SAMAIDEN’s total RE portfolio is estimated at 178MWac comprising LSS5 (56%), CGPP (31%), Bioenergy (11%), with the remainder from other sources. Assuming all assets become operational by FY29F, our preliminary estimates indicate recurring PATMI could reach about RM21m.

 

Outlook. SAMAIDEN aims to achieve a 10% recurring income target by 2027 (up from less than 1% as at 9MFY25). In the near term, growth is expected to be supported by the LSS5+ programme, given that Samaiden has already secured a 99.99MWac solar project under Package 3 of LSS5 as a project developer in December 2024. Management is also focusing on incremental growth from rooftop solar PPAs, targeting an additional 15–20MWac per year to further support the recurring income target. With a conservative gearing ratio of 0.17x as of 31 March 2025, we see limited risk to financing capacity. Overall, we believe Samaiden is well-positioned to expand its solar portfolio and deliver on its medium-term growth objectives.

 

Earnings revision. No changes to our earnings forecast, as earnings contribution from the bioenergy plants will only be reflected in FY29F.

 

Valuation & Recommendation. After incorporating the new PPAs, we arrive at an unchanged TP of RM1.60, based on a sum-of-parts (SOP) valuation and supported by a three-star ESG rating.

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