Atlantic Blue Sdn Bhd (wholly owned subsidiary) has been awarded an RM89.5m EPCC contract by Jubli Pasific Sdn Bhd for a 36.0 MWac LSS5 solar plant in Perlis scheduled for completion by 26 February 2028.
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 RM3.57, based on a SOP valuation and a three-star ESG rating.
36.0MWac Contract. Atlantic Blue Sdn Bhd (ABSB), the wholly owned subsidiary of Solarvest Holdings Berhad (SLVEST), entered an EPCC contract with Jubli Pasific Sdn Bhd on 18 March 2026 for the development of a 36.0 MWac Large Scale Solar 5+ (LSS5+) photovoltaic plant in Padang Siding, Perlis. The contract is valued at RM89.5m and is targeted for completion by 26 February 2028 – a construction window of approximately 20 months from NTP receipt.
Our Take. We view the contract positively, reinforcing SLVEST's position as Malaysia's dominant LSS5+ EPCC contractor. While smaller in scale compared to the RM320m Wawasan Demi or RM142.3m MK Land wins, the Jubli Pasific contract is strategically significant for several reasons: (i) Geographic Footprint: Perlis extends SLVEST's northern corridor dominance, complementing its Kulim, Kedah presence. The northern region is expected to play a key role in Malaysia's renewable energy capacity buildout, particularly under LSS5+ and the upcoming LSS6 programme. (ii) Financial Impact: At a 6% PBT margin assumption, the RM89.5m contract is estimated to generate approximately RM5.4m in PBT over the ~20-month construction horizon. Earnings contribution is expected to commence from FY27 and extend through FY28, with the bulk of revenue falling in FY27. This is broadly consistent with our existing FY27F CNP forecast of RM127.1m, where the Jubli Pasific contribution represents a modest incremental add.
Outlook. With the Jubli Pasific award, SLVEST's adjusted unbilled order book rises to approximately RM1.63bn (from RM1.54bn as of 31 December 2025), with over 68% attributable to the LSS5/Sabah pipeline. Management targets exceeding RM2.0bn in total order book by end-FY26, implying additional replenishment of approximately RM0.37bn in 4QFY26. Near-term order book replenishment is expected to be supported by LSS5+, where EPCC contracts are typically awarded 6-9 months after project developer financial close. Management remains confident of maintaining a comparable share to its LSS5 position (c.31.5% market share). Key Catalysts: (i) 4QFY25 peak CGPP execution driving revenue acceleration; management expects strong billings as projects approach completion milestones. (ii) LSS5+ EPCC contract awards expected 6-9 months post developer financial close – pipeline of RM4-5bn remains a significant medium-term opportunity for SLVEST. (iii) LSS6 tender expected to open in 1H2026, adding another layer of order book replenishment beyond the current horizon. (iv) BESS and CRESS emerging as new revenue vectors, with a 300MWh BESS tender book already accumulated as of February 2026. (v) Solar ATAP (effective 1 January 2026) expected to sustain C&I annual revenue run-rate at approximately c.RM200m.
Earnings revision. No changes to our earnings forecasts, as the contract win falls within our orderbook replenishment assumptions.
Valuation. Maintain a BUY rating on SLVEST with an unchanged TP of RM3.57, based on a SOP valuation and a three-star ESG rating. We believe SLVEST is well-positioned to capitalise on government renewable energy initiatives like CRESS and ATAP, 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, and Intense market competition.
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