Solarvest Holdings Berhad's (Solarvest) RM242m outstanding orderbook as at end-FY24 provides earnings visibility into FY25E and this can extend into FY26E from potential Corporate Green Power Programme (CGPP) contract awards on engineering, procurement, construction, and commissioning (EPCC) works which could lift its orderbook by about MYR1b.

Maybank Investment Bank (Maybank IB) maintained their earnings forecasts, having already imputed MYR1b job wins in FY25E. There is no change to their TP and BUY call.

Maybank IB remains upbeat on Solarvest's prospects in growing its orderbook and asset base amid strong demand for RE in medium to longer term.

With the completion of all 11 LSS4 projects in FY24, Solarvest is now expecting the award for about 443MWp of CGPP EPCC projects, implying MYR1b rise in orderbook replenishment starting from 2Q-3QFY25E.

Beyond CGPP, Solarvest's EPCC orderbook could expand further to include the Commercial & Industrial (C&I) projects with a target replenishment of MYR50m/quarter.

Maybank IB also looks forward to Solarvest's participation in the new RE quota of 2GW under LSS5 to grow its orderbook, and asset base.

Solarvest has secured a cumulative 23.5MWp of overseas projects in FY24. Into FY25E, it targets for 200MWp of solar rooftop and large-scale projects to materialise. In Jun 2024, it announced a strategic collaboration with GreenRock Energy, targeting for 1GW of RE projects in the next five years.

Solarvest has a tenderbook of 2.04GW for overseas projects as at end-May 2024, Maybank IB said in a note today.

Solarvest proposed a private placement of up to 40.2m new shares, to raise approximately MYR56.7m (based on MYR1.41/sh), primarily to be used as capex for its C&I rooftop and CGPP projects.

Maybank IB understands that Solarvest is also planning another fundraising to support its future RE asset investments. Solarvest has a net gearing of 0.3x as at end-FY24.