3QFY26 CNP came in at RM8.0m (+0.6% QoQ, +83.0% YoY), bringing 9MFY26 CNP to RM21.1m (+72.4% YoY), which firmly exceed our expectations, accounting for 80.2% of our forecasts and broadly in line with 70.2% of consensus estimates.
The strong earnings performance was driven by accelerated progress in utility-scale solar and corporate green power projects, supported by a stronger margin mix and improved operational efficiency.
We raise our earnings forecasts by 21.0% and 15.0% for FY26F-FY27F respectively, to reflect structurally improved EPCC margins driven by operational efficiencies.
Maintain BUY with a higher TP of RM1.74 (from RM1.55), backed by Samaiden’s strong utility-scale solar execution, net cash position, and growing recurring income base.
Exceed Expectations. Stripping out a RM1.1m fair value gain on short-term investments, 3QFY26 core net profit (CNP) rose to RM8.0m (+0.6% QoQ, +83.0% YoY). This brought 9MFY26 CNP to RM21.1m (+72.4% YoY), firmly exceeding our expectations by accounting for 80.2% of our full-year forecast and broadly in line with 70.2% of consensus estimates. The outperformance was primarily driven by commencement and accelerated construction progress of several utility-scale solar and corporate green power projects.
QoQ. 3QFY26 CNP rose 0.6% YoY to RM8.0m despite softer revenue contribution, mainly due to reduced progress billings from preliminary works on LSS5 projects. Earnings growth was supported by a better margin mix from newly secured projects, coupled with improved procurement efficiency and tighter cost controls. Accordingly, CNP margin improved by 4.0 ppts to 11.8% from the preceding quarter.
YoY. 3QFY26 CNP surge (+83.0%) to RM8.0m (3QFY25: RM4.4m). The significant earnings reflect the effective conversion of the Group's robust order book. Additionally, the Group’s transition in project mix towards larger utility-scale solar projects, compared to the prior year’s greater concentration on smaller Commercial & Industrial (C&I) projects, has structurally strengthened its earnings profile.
Outlook. We anticipate continued sequential strength in 4QFY26, Samaiden is expected to remain a key beneficiary of Malaysia’s accelerating renewable energy transition, supported by favourable government policies, rising electricity costs, and increasing corporate decarbonisation initiatives. The ongoing expansion of rooftop solar adoption across the residential and commercial & industrial (“C&I”) segments is likely to continue driving demand for solar EPCC services, particularly following the introduction of the Solar Accelerated Transition Action Programme (“ATAP”) in 2026. In our view, the anticipated rollout of Large-Scale Solar 6 (“LSS6”), which is expected to incorporate battery energy storage system (“BESS”) components, could serve as a meaningful catalyst for the Group, given its growing track record in utility-scale solar projects. We believe Samaiden is strategically positioned to capitalise on these opportunities, backed by its healthy order book, strong execution capabilities, and expanding renewable energy asset portfolio. The Group’s increasing exposure to recurring income-generating assets is also expected to enhance earnings visibility and improve income stability over the longer term, reducing reliance on purely project-based earnings.
Order Book. As of 31 March 2026, the order book remains healthy at approximately RM488.4m (c.1.38x FY25 revenue). This provides clear earnings visibility through FY27, even before accounting for potential wins from the LSS5+ pipeline.
Earnings revision. We have raised our margin assumptions for the EPCC segment to reflect the more favourable project mix margins and improved operational efficiencies as major utility-scale projects move beyond their initial setup phases. Consequently, we revise our core earnings upward by 21.0%, 15.0% for FY26F and FY27F respectively, while maintaining our existing order book replenishment forecasts.
Valuation & Recommendation. Following our earnings revision, we maintain BUY and raise our TP to RM1.74 (from RM1.55). Our valuation is anchored on a sum-of-parts (SOP) framework valuing the core EPCC business at 30x PE and incorporates a three-star ESG rating. We continue to favour Samaiden for its: (i) proven expertise in ground-mounted solar PV projects, (ii) industry-leading low gearing with a net cash position, and (iii) strategic focus on bioenergy solutions, which distinguishes it from other solar EPCC players. Given the improved margin outlook and robust project execution, we believe the current valuation offers an attractive entry point to capture the Group's multi-year growth trajectory.
Risks. Increase in solar module costs. Inability to complete projects in time. Intense market competition.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.949723 | 3.981539 |
| EUR | 4.614340 | 4.619218 |
| CNY | 0.585739 | 0.586367 |
| HKD | 0.504357 | 0.507919 |
| SGD | 3.092670 | 3.114543 |