The NEM 3.0 policy is released, benefiting 5 potential solar energy companies.

The Net Energy Metering (NEM) 3.0 policy guidelines have been released, expected to stimulate demand for rooftop solar installations, boost the development of the EPCC Industry, with Samaiden Group and four other companies viewed as potential beneficiaries. $SAMAIDEN (0223.MY)$ Four other operators, including Samaiden Group, are seen as potential beneficiaries.

According to securities analysts, 'This is an early Christmas gift from the government to renewable energy developers, as this policy will increase demand for solar installations, and it is also a highly profitable business in the utilities sector.'

'Therefore, we have a positive view of this policy, as it will serve as a positive catalyst for the Electrical Utilities industry in terms of Construction, Procurement, Construction and Commissioning (EPCC). This also aligns with our previous expectations for the 2025 budget, that is, to expand NEM 3.0 quotas and extend the Solar People's Award Plan (SolaRIS).'

Analysts believe that the potential beneficiaries of this policy will include the Samaiden Group, which has received attention, and other stocks not on the watchlist, including Solarvest. $SLVEST (0215.MY)$ Sunview Group $SUNVIEW (0262.MY)$ and the Bakar Group $PEKAT (0233.MY)$ 。

In addition, Northern Solar, a solar renewable energy specialist company scheduled to be listed on the GEM in February 2025, is also believed to be a key potential beneficiary of this policy.

The analyst further stated that with the Corporate Green Power Plan (CGPP) and the 5th Large-Scale Solar Project (LSS5), both scheduled to be implemented by the end of 2025 and 2026 respectively, it is believed that they will further boost business for EPCC companies specializing in rooftop solar energy installations.

Bullish on the future of the electrical utilities sector.

"Overall, it is expected that EPCC players in the renewable energy sector will achieve new highs next year, especially in terms of order and revenue performance."

Analysts believe that the electricity and public utilities sector will continue to be driven by the energy transition in the future, and the National Energy Transition Roadmap (NETR) will provide support for sector goals.

Furthermore, the rapid development of data center capacity is expected to drive increased demand, further highlighting the necessity for additional electrical power.

"Therefore, due to the tight supply and demand in the power generation market, the expansion plans for renewable energy (RE), the increase in electricity grid capital expenditure (CAPEX), and factors such as renewable energy exports boosting the industry, we maintain a 'Shareholding' rating for the sector, with a focus on Samaiden Group as our top pick."

However, analysts caution that any adverse changes in regulatory and policy frameworks would pose risks to the industry.