Samaiden Group Berhad - Teaming up with YTL on LSS5+
Mon, 05-Oct-2026 07:59 am
by Research Team • Apex Research

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SAMAIDEN (0223)

Target Price (RM)

3.99

Recommendation

Buy

  • Samaiden secured EPCC and solar component supply contracts from Syarikat Pembenaan Yeoh Tiong Lay (YTLSB) for a 99.99MWac LSS5+ plant. The contract sum was not disclosed.

  • The job helps rebuild an order book that slid from RM617.5m in 1QFY26 to RM435.8m in 4QFY26, and supports management's RM1bn order book target for FY27.

  • Forecasts are unchanged as the contract sits within our LSS win assumption.

  • Maintain BUY with a TP of RM3.99, based on sum-of-parts (SOP) valuation, and appraised with three-star ESG rating. 

 

The contract. Samaiden Sdn Bhd, a wholly-owned subsidiary, signed a Works Contract and a Contract for Supply of Solar Components with YTLSB, the main contractor for a 99.99MWac large scale solar plant. The project is one of the LSS5+ projects approved by Suruhanjaya Tenaga in September 2025, the scope covers design, engineering, procurement, construction, testing and commissioning, with works set to begin once YTLSB issues the Notice to Proceed. The contract sum was not disclosed. We estimate the contract value at c.RM305m, based on the RM3.05m/MWac implied by Samaiden's 95MWac Hilir Perak LSS5 contract (RM290m). Applying this benchmark to the 99.99MWac YTLSB project implies a contract value of c.RM305m.

 

Our Take. We view it as positive for order book visibility into FY28. YTLSB's appointment of Samaiden for both the works and solar component supply reinforces its positioning as a specialist solar EPCC player. As YTLSB holds the main contract, Samaiden can capture the solar scope while limiting its exposure to the broader project-level risks, although it remains responsible for execution of its contracted scope. The job adds a third-party LSS5+ EPCC contract to a portfolio where LSS5+ exposure so far came through the owned Segamat asset. 

 

Margin watch. The supply contract puts module procurement on Samaiden. Management earlier guided that its stockpile of pre-rebate-removal panels supports elevated margins for two to three quarters, with new panel prices expected to be 5% to 10% higher. If the Notice to Proceed lands after the stockpile is used up, this job will carry costlier panels. Unless that cost was priced into the bid, we expect it to earn below the current LSS5 jobs.

 

Order book. Unbilled order book stood at RM435.8m as of 30 June 2026, down from RM617.5m in 1QFY26 as LSS5 jobs moved into main construction. On our c.RM305m estimate, this contract lifts the pro forma order book to c.RM741m and supports management's RM1bn order book target for FY27, with the balance to come from the c.RM3.2bn tender book.

 

LSS5 portfolio. Including this contract, Samaiden now has six LSS5 and LSS5+ projects: three earlier EPCC jobs with a combined contract value of RM435.7m, the new YTLSB job, and two owned 99.99MWac assets. The owned assets start contributing revenue in FY28F and anchor the recurring income base.

 

Earnings. No change to forecasts, as the contract falls within our current LSS win assumption of c.RM305m and covers about 60% of our FY27 order book replenishment assumption. We maintain FY27F, FY28F and FY29F core net profit at RM60.7m, RM84.6m and RM89.2m.

 

Valuation and Recommendation. Maintain BUY with a TP of RM3.99, based on a sum-of-parts framework that values the EPCC business at 30x FY28F core earnings (RM2,155.5m) and the renewable asset portfolio by discounted cash flow (RM78.5m), over 560.8m shares, and incorporating a three-star ESG rating at no premium. 

 

Risks. Delays in the Notice to Proceed, higher module and equipment costs, project execution and completion delays, and funding risk on the asset ownership programme.

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