SLVEST’s 4QFY26 CNP of RM27.6m (+21.9% QoQ, +15.6% YoY) came in within expectations, bringing 12MFY26 CNP to RM87.5m (101% of our forecast; 110% of consensus). We deem the results broadly in line, supported by stronger CGPP billings and progressive execution of LSS5 projects.
Near-term order book replenishment is expected to be supported by ongoing LSS5 execution and potential opportunities from the anticipated LSS6 rollout.
Maintain a BUY recommendation with a revised TP of RM3.31, based on a SOP valuation and a three-star ESG rating.
Broadly inline. After adjusting for forex loss (+RM2.14m), impairment loss on trade receivable (+RM1.87m), impairment loss for investment in associate (+RM0.58m) and reversal of impairment losses on trade receivables (-RM0.92m), SLVEST’s 4QFY26 core net profit (CNP) is arrived at RM27.6m, bringing 12MFY26 CNP to RM87.5m. This represents 101% of our full-year forecast and 110% of consensus. We deem the results broadly in line with our estimates as the Group enters a period of accelerated revenue recognition from CGPP projects and early-stage execution of the LSS5 pipeline.
QoQ. CNP increased by 21.9% from RM22.7m in 3QFY26. The growth was primarily fuelled by large-scale projects, particularly as LSS5 reached peak execution reflected in the increase of revenue (+48.2% QoQ) to RM268.7m. CNP margin softened from 12.5% in 3QFY26 to 10.3% in 4QFY26, mainly attributable to the elevated effective tax rate of 39.4%, stemming from several non-operational tax adjustments during the quarter, including prior period tax under-provisions and certain non-tax-deductible expenses. We believe these effects are largely temporary and expect the Group’s effective tax rate to trend closer towards the statutory 24% rate going forward.
YoY. Revenue grew 19.5% YoY to RM268.7m and CNP increased by 15.6% driven by (i) stronger execution of utility-scale solar projects following the rollout of several LSS5 projects, alongside continued progress under the CGPP programme. (ii) higher share of results from associates and joint ventures, which contributed RM5.3m in 4QFY26 (4QFY25: RM2.6m); and (iii) stronger power generation contribution as assets ramped up to stable operating levels.
YTD. For the YTD/FY26, the Group’s revenue increased by 41.0% from RM536.8m to RM757.1m compared to YTD/FY25, mainly driven by stronger project execution and higher contributions from utility-scale solar projects as a result of the increased orderbook owing to LSS5 and CGPP programmes. Meanwhile, core net profit grew by 52.9% YoY from RM57.20m to RM87.5m.
Outlook. We remain positive on the outlook of Solarvest Holdings Berhad in FY27, supported by its sizeable RM2.47bn order backlog and growing portfolio of owned solar assets, which are expected to enhance earnings quality and improve cash flow stability over time. We remain optimistic about Solarvest’s long-term asset ownership strategy, as the Group continues to explore opportunities to expand its renewable energy asset holdings in Borneo. The Group continues to maintain a strong position in Malaysia’s utility-scale solar segment, with an estimated 25% market share under the 2,000MWac LSS5+ programme. We believe ongoing project execution and potential opportunities from the anticipated LSS6 rollout in 1H2026 will continue to support medium-term EPCC growth. Meanwhile, Solarvest’s sizeable 12.62GWp solar tender pipeline and 570MWh BESS tender book provide additional long-term growth visibility. Its early involvement in the BESS segment also positions the Group well to benefit from the increasing adoption of integrated solar-plus-storage solutions in Malaysia. On the retail front, the introduction of Solar ATAP on 1 January 2026 should sustain the C&I annual revenue run-rate, estimated at c.RM200m.
Order book. As of 31 March 2026, SLVEST’s unbilled order book stood at RM2.47bn (91% utility; 9% C&I and residential), equivalent to 4.6x its FY25 revenue.
Forecasts. We raise our FY27-29F core net profit forecasts by 6.8%/3.4%/3.3% to RM127.9m/RM232.1m/RM211.6m respectively, following updated orderbook assumptions due to an analyst change. We also conducted housekeeping on our enlarged share base, incorporating the completion of the private placement, full exercise of Warrants, additional ESOS exercises, and treasury share purchases, bringing the fully diluted share base to 1,021m shares (from 928m previously).
Valuation. Maintain BUY with a revised TP of RM3.31 (from RM3.57), based on an SOP valuation. The TP reduction is primarily driven by the c.10% enlargement in the share base which more than offsets the upward earnings revision. However, we continue to 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. Intense market competition.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.953306 | 3.984027 |
| EUR | 4.594538 | 4.602818 |
| CNY | 0.582675 | 0.583138 |
| HKD | 0.504615 | 0.508560 |
| SGD | 3.085501 | 3.109763 |