SLVEST has secured a RM320m EPCC contract for a 99.99MWac LSS5 solar plant, increasing the order book to RM1.6bn, equivalent to 3.1x FY25 revenue. This award raises SLVEST’s LSS5 EPCC market share to 31.5%, above its historical average of about 20%.
Near-term job flow momentum is expected to be mainly supported by LSS5+, where EPCC awards typically occur 6-8 months after developers achieve financial close. Based on our estimates, the remaining LSS5 jobs together with the unallocated portion of LSS5+ could provide RM4-5bn in EPCC opportunities, sustaining near-term order book replenishment prospects.
Maintain a BUY recommendation with an unchanged TP of RM3.55, based on a SOP valuation and a three-star ESG rating.
99.99MWac Contract. On 20 Nov 2025, SLVEST’s wholly-owned subsidiary, Atlantic Blue Sdn Bhd (ABSB), entered into an EPCC contract with Wawasan Demi Sdn Bhd (WDSB) for the development of a 99.99MWac Large Scale Solar 5 (LSS5) plant in Kampar, Perak. The contract is valued at RM320m and is targeted for completion by 30 Oct 2027 (3QFY28). The contract scope covers the full engineering, procurement, construction, and commissioning (EPCC) works. As part of the contract terms, ABSB will provide a 7.5% performance bond (RM24m), while WDSB is required to achieve financial close before the project commences.
Our Take. We view the contract positively, as it represents third EPCC job win for LSS5 alone and will support SLVEST’s earnings up to FY28. Based on a 5% PBT margin and a six-month financial close assumption, the RM320.0m contract is expected to generate about RM16m in PBT over the 17-month construction period beginning May 2026 (13.5% of our FY26F PBT). We do not foresee major execution risks, supported by SLVEST’s established track record in utility-scale solar projects. With this win, SLVEST’s unbilled order book increases to RM1.6bn, equivalent to 3.1x FY25 revenue, providing healthy earnings visibility over the next 3 years.
Outlook. With this award, SLVEST’s LSS5 EPCC market share increases to 31.5%, above its historical average of about 20%. The Group has secured an estimated RM1.1bn in LSS5 EPCC contracts, which now represent 65% of the total order book. Several LSS5 projects have commenced work to meet the 2027-2028 COD timeline, and earnings contributions should progressively reflect in the coming quarters as construction advances. The tender book remains robust at 9.19GWp, driven predominantly by domestic opportunities. Near-term order book replenishment is expected to be supported by LSS5+, where EPCC jobs are typically awarded 6-8 months after developers achieve financial close. Channel checks also indicate that a small portion of LSS5 EPCC contracts has yet to be allocated and could be finalised in the near term. Based on our estimates, the remaining LSS5 jobs together with the unallocated portion of LSS5+ could offer RM4-5bn in EPCC opportunities, underpinning SLVEST’s near-term order book replenishment prospects. We remain confident that SLVEST can achieve a comparable market share in LSS5+ (current: 23.5%) as in LSS5, supported by its strong execution track record.
Earnings revision. No changes to our earnings forecasts, as the FY26 YTD announced contract win of RM2.2bn falls within our order book replenishment assumption of RM2.5bn.
Valuation. Maintain a BUY rating on SLVEST with an unchanged TP of RM3.55, based on a SOP valuation and a three-star ESG rating. We believe SLVEST is well-positioned to capitalise on government renewable energy initiatives, thanks to its unique in-house solar financing and its position as Malaysia’s largest solar EPCC player.
Risks. Increase in solar module costs. Heavy reliance on government initiatives. Intense market competition.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.144070 | 4.176994 |
| EUR | 4.790696 | 4.800157 |
| CNY | 0.584163 | 0.584752 |
| HKD | 0.532153 | 0.536404 |
| SGD | 3.170633 | 3.196101 |