Solarvest Holdings announced the successful acquisition of an RM113 million Engineering, Procurement, Construction, and Commissioning (EPCC) contract for a 29.99 megawatt (MW) solar farm under the Corporate Green Power Program (CGPP).

According to Maybank Investment Bank (Maybank) in a note today (Sept 4) said that this project will bolster Solarvest's outstanding order book to MYR582 million, comprising RM340 million in CGPP-related EPCC works and the remainder from Commercial & Industrial (C&I) projects.

Maybank said that they make no change to their earnings forecasts, having imputed new OB assumptions of MYR600m/ MYR800m in FY25/26E respectively, and continue to recommend a "BUY" rating for Solarvest, with an unchanged sum-of-the-parts target price of MYR1.84.

The solar farm, to be developed by Solarvest's wholly-owned subsidiary, Atlantic Blue Sdn. Bhd. (ABSB), will be located in Mukim Pekan, Pahang, occupying 88 acres of repurposed land.

Once operational, it is expected to generate approximately 57.5 gigawatt-hours (GWh) of clean energy annually, along with around 60,000 Renewable Energy Certificates (RECs). The EPCC works are slated for completion within 18 months of the contract's acceptance.

Additionally, Maybank noted that Solarvest is actively pursuing additional CGPP EPCC projects, with bids for approximately 443 MWp, potentially generating an estimated revenue of RM714 million.

In addition, the company aims to replenish its order book by targeting RM50 million in C&I projects each quarter.

Despite the recent contract Maybank has maintained Solarvest's earnings forecasts, projecting an order book of RM600 million and RM800 million for FY25 and FY26, respectively. They remain optimistic about Solarvest's growth prospects in the renewable energy sector, supported by robust demand in the medium to long term.