Samaiden stays a 'Buy', target price RM3.13

KUALA LUMPUR: Samaiden Group Bhd's latest solar project is expected to add about RM200 million to RM250 million in engineering, procurement, construction and commissioning (EPCC) value, according to Hong Leong Investment Bank (HLIB Research).

HLIB Research analyst David Ng said the 99.99 megawatt (MWac) award was positive for Samaiden as it lifts the company's cumulative exposure under the Large Scale Solar 5+ (LSS5+) programme to about 200 MWac, or 10.1 per cent of the total awarded capacity.

He expects the latest project to contribute to Samaiden's earnings in financial years 2027 and 2028.

Ng said more conversions in the coming months are also expected, with Samaiden's tenderbook standing at about RM3.5 billion, of which 56 per cent is linked to Corporate Renewable Energy Supply Scheme (Cress) projects.

"We expect conversion to accelerate in the next six months, given the tight commercial operation date deadline in 2028 under the Cress acceleration programme.

"Our current assumption of 200MW of Cress orderbook replenishment in FY27 could prove conservative, in our view, as data centre offtakers move quickly to secure renewable energy supply and benefit from the special 14 sen per kilowatt-hour system access charge rate," he said in a note.

The latest project comes after Samaiden entered into a works contract and a contract for the supply of solar components with Syarikat Pembenaan Yeoh Tiong Lay last Friday to undertake the EPCC works for the LSS5+ project.

Samaiden said the contract value and location of the proposed facility were not disclosed due to confidentiality restrictions.

The works will commence upon the issuance of the notice to proceed, in accordance with the terms of the contracts.

The latest award follows Samaiden's 99.99MWac Segamat project, in which the company holds a 70 per cent stake.

As the latest LSS5+ contract was already captured in HLIB's orderbook assumptions, Ng said HLIB Research maintained its financial year 2027 and 2028 earnings forecasts.

The firm also introduced its financial year 2029 forecast, with earnings estimated at RM104 million, up 19.4 per cent year-on-year.

Ng maintained a "Buy" call on Samaiden with a target price of RM3.13.

"We like the stock for its exposure to the growing domestic solar industry and bioenergy segments," he said.