Samaiden appears to be shining brighter backed by strong order book

After touching a year-high of RM1.42 in May, Samaiden Group Bhd has been trending lower. Fundamentally, Samaiden’s forward earnings will be driven by an existing order book of RM521 million.

The company registered 60% jump in net earnings to RM16.1 million in the financial year ended June 2024. It subsequently posted a 13% year-on-year rise in quarterly net profit of RM3.3 million in 1QFY25.

However, Samaiden posted weaker 1Q25 performance compared with 4QFY24. This was following the completion of the Large Scale Solar 4 (LSS4) programme.

On a positive note, the company’s earnings are expected to improve in the second half of 2025. This is in line with expectations of a pick-up in activity for solar engineering, procurement, construction and commissioning players in 2HFY2025, driven by the corporate green power programmes' (CGPP) tight completion deadline by end-2025.

Based on consensus projections, Samaiden is expected to achieve a stronger net profit of RM22.1 million for FY25 and RM28.5 million for FY26. This will be supported by its order book of RM521 million as of 29 Nov 2024.

The company’s order book grew from RM315 million to RM521 million, positioning it well for continued growth. These consensus estimates translate to prospective price earnings ratios of 23.3x for FY25 and 18.1x for FY26, respectively.

In Oct, the renewable energy specialist bagged a RM39.17 million contract to undertake a 10-megawatt large-scale solar photovoltaic power plant in Bahau, Negeri Sembilan, in a related-party transaction.

The contract was awarded by Bahau Power Sdn Bhd, which is owned by Angelaxy Power Sdn Bhd (51%) and Uzma Environergy Sdn Bhd (49%).

Angelaxy is wholly owned by Samaiden managing director Datuk Chow Pui Hee, while Uzma Environergy is a wholly owned unit of Uzma Bhd.

Bahau Power is involved in renewable energy generation through the harvesting of solar energy for electricity production. The scheduled commercial operation date of the plant is Sept 15, 2025. Things should be looking better for Samaiden and the current level appears to be an attractive entry price for investors.