00:00 After a long weekend, we kick it off with RE player Semaidin, which has emerged as a big winner in the latest round of awards of solar power gen capacity, according to Kenanga.
00:11 The research house has an outperformed call on the group and a higher target price of RM1.80, implying a possible 53% upside.
00:19 Semaidin has emerged as a big winner in the latest round of awards of solar power generation capacity under the Corporate Green Power Programme, or CGPP.
00:28 It has won a total of 43.32 MWAC, comprising 13.42 MWAC on its own and 29.9 MWAC via a consortium.
00:38 Kenanga believes the CGPP offers higher return via Large-Scale Solar Programme (LSS Programme)
00:44 as the CGPP uses a willing buyer/selling model versus an open bidding model under the LSS Programme.
00:51 As such, Kenanga anticipates a higher tariff in the range of 25 to 28 cent per kilowatt hour, and it believes the IRR for the CGPP could be in the low to mid-teens versus 8 to 10% under the LSS Programme.
01:05 The CGPP also ushers in a new order book replenishment cycle for EPCC players.
01:10 Based on Kenanga's estimates, the CGPP will generate around $2.4 billion worth of EPCC jobs and it will keep them busy until the end of 2025.
01:19 Kenanga raises its FY24 and FY25 net profit forecast by 2 and 10% respectively, assuming Samaidan is to secure about 15% of total EPCC jobs under the CGPP.
01:31 The latest updates on Bloomberg, all from the past month, show 3 buys on the counter.
01:35 The target price works out to RM1.62, which is 44 cent more than its last close.
01:40 [music]
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