MORNING CALL: 13/12/23

Kenanga Research sees Solarvest’s earnings growing by 53% and 67% in FY24-25, respectively

Transcript

00:00 At SolarVest Holdings this morning, Kenanga Research initiating coverage with an outperformed

00:06 call and target price of RM1.47.

00:10 The stock last closed at RM1.24.

00:13 The investment merits?

00:14 The renewable energy market in Malaysia has a bright outlook.

00:18 That's underpinned by the government's strong commitment towards RE for one.

00:22 Also RE export potential and the increased commercial viability of solar power projects

00:28 on falling solar panel prices.

00:30 SolarVest itself boasts a strong market position, execution track record, clientele and value

00:36 proposition of its PV system financing program, PowerVest.

00:40 It's got strong earnings visibility backed by sizable outstanding order and tender books

00:45 and recurring incomes from a growing portfolio of solar assets.

00:49 Moving forward, Kenanga is projecting earnings to grow by 53% to RM30.1M in FY24 and 67%

00:58 to RM50.4M in FY25, driven by stronger EPCC order book replenishment.

01:05 It also expects a higher earnings contribution from sale of electricity from the upcoming

01:10 solar power plants under LSS4 and PowerVest with better margins.

01:14 According to Bloomberg data, five research houses cover SolarVest and all five say it's

01:19 a buy.

01:20 It's average target price RM1.48, 19% higher than the stock's last close of RM1.24.

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