Solarvest Holdings Berhad - RM142.3m EPCC Contract Under CGPP
Mon, 01-Dec-2025 07:51 am
by Tan Sue Wen • Apex Research

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SLVEST (0215)

Target Price (RM)

3.55

Recommendation

Buy

  • SLVEST has secured a RM142.3m EPCC contract for a 29.99MWac CGPP solar plant, increasing the unbilled order book to RM1.8bn, equivalent to 3.3x FY25 revenue. With this latest win, SLVEST’s combined CGPP EPCC market share rises to c.30%, representing RM767.3m in total CGPP project value secured to date.

  • Near-term job flow momentum is expected to be driven by LSS5 and LSS5+. Based on our estimates, the remaining LSS5 packages together with the unallocated portion of LSS5+ could provide RM4–5bn in EPCC opportunities, sustaining SLVEST’s order book replenishment prospects over the near term.

  • Maintain BUY with an unchanged TP of RM3.55, based on SOP valuation and supported by a three-star ESG rating.

 

29.99MWac CGPP Contract. On 28 Nov 2025, SLVEST’s wholly-owned subsidiary, Atlantic Blue Sdn Bhd (ABSB), entered into an EPCC contract with Citra Energies Sdn Bhd (CESB), an indirect subsidiary of M K Land Holdings Bhd (NR), for the development of a 29.99MWac solar photovoltaic plant under the Corporate Green Power Programme (CGPP) located in Padang Meha, Kulim, Kedah. The contract is valued at RM142.3m and is anticipated to be completed by 1HCY27. The scope covers the full engineering, procurement, construction, and commissioning (EPCC) works for the solar plant and its interconnection facilities.

 

Our Take. We view the contract positively as the pricing is attractive at RM4.8m/MW, higher than the typical RM3.0-3.5m/MW seen in LSS projects. This should support SLVEST’s earnings up to FY28. Assuming an 8% PBT margin and a three-month financial close, the RM142.3m contract is expected to contribute about RM11.4m in PBT over the 16-month construction period starting Feb 2026 (9.6% of our FY26F PBT). Execution risk is manageable, underpinned by SLVEST’s established track record in utility-scale solar projects. This is also SLVEST’s second EPCC job with M K Land, and the past working relationship should help ensure smoother coordination and faster implementation. With this win, SLVEST’s unbilled order book increases to RM1.8bn, equivalent to 3.3x FY25 revenue, providing healthy earnings visibility over the next three years.

 

Outlook. With this award, SLVEST’s CGPP EPCC market share is estimated to rise to 30%, representing a combined project value of RM767.3m across all CGPP jobs secured to date. Nonetheless, we believe near-term order book replenishment will continue to be driven by LSS5 and LSS5+. Based on our channel checks, the remaining LSS5 packages together with the unawarded portion of LSS5+ could offer RM4-5bn in EPCC opportunities, underpinning SLVEST’s order book prospects over the next two years. We remain confident that SLVEST can secure a comparable market share in LSS5+ (current: 23.5%) to that achieved in LSS5 (31.5%), underpinned by its strong execution track record.

 

Earnings revision. No changes to our earnings forecasts, as the FY26 YTD announced contract win of RM2.5bn 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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