PETALING JAYA: Analysts expect the forthcoming contracts related to the Corporate Green Power Programme (CGPP) to continue boosting Samaiden Group Bhd’s order book, building on the RM100mil contract to develop a solar power plant at Kulim Hi-Tech Park (KHTP), Kedah.

       On Monday, Samaiden’s wholly-owned subsidiary Samaiden Sdn Bhd and its consortium member JS Solar Sdn Bhd secured a RM100mil contract from NUR Renewables Sdn Bhd to develop a solar power plant at KHTP.

       While Samaiden’s stake in the engineering, procurement, construction and commissioning (EPCC) consortium was not revealed, Hong Leong Investment Bank (HLIB) Research expects the new project will take its outstanding order book to the range of RM437mil to RM447mil.

       The research outfit believes that the recent contract win represents the first phase of a much larger project to supply green energy to all customers located at KHTP.

       “Reportedly, NUR plans to develop a 500 megawatts (MWac) solar project in collaboration with UEM Lestra Bhd, the green energy arm of UEM Group Bhd.

       “Both parties (NUR and UEM) inked a joint-venture agreement for the 500MWac solar farm development in December 2023,” it noted.

       The brokerage estimated that year-to-date, for its financial year ending June 30, 2024 (FY24), Samaiden has secured EPCC wins totalling RM270mil, reaching 70% of its full fiscal-year projections.

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       “We expect the upcoming CGPP contracts in the first half of this year to further lift its order book.” it said.

       Similarly, Kenanga Research believes that Samaiden’s long-term growth is well-supported by the National Energy Transition Roadmap (NETR), which sets a target of renewable energy to make up 70% of total power generation capacity by 2050.

       “Also, businesses in general, driven by commercial reasons (to save cost) and environmental, social and governance considerations, have voluntarily invested in solar energy generation assets following the recent hikes in electricity tariffs,” it noted.

       According to Kenanga Research, Samaiden’s tender book stands at RM1.2bil, with EPCC jobs for CGPP projects making up about 40%; rooftop solar for the commercial and industrial segments around 30%; and stand-alone/off-grid solar power systems accounting for about 30%.

       MIDF Research, meanwhile, expects Samaiden’s earnings to be driven by the remaining large-scale solar 4 (LSS4) projects and estimates them to account for 37% of gross enlarged order book.

       It also anticipates further news flow of contract wins, considering the prospective EPCC tenders for the 800MWac CGPP projects awarded in the second half of last year and the 500MWac of the one-gigawatt hybrid solar power project in Johor that was recently finalised.

       This view is also echoed by RHB Research, which noted: “Moving forward, we anticipate stronger contract flows coming from the CGPP, the remaining 450MWac KHTP solar project and the development of the NETR.”

       As the recent contract win was within the expectations of HLIB Research and RHB Research, the research houses, which maintained their “buy” calls on the stock, made no changes to their earnings estimates, keeping the target price (TP) unchanged at RM1.43 and RM1.55 a share, respectively.

       MIDF Research, meanwhile, left its earnings estimates unchanged at this juncture pending further clarity of Samaiden’s stake in the latest project.

       It maintained a “buy” call on the stock with an unchanged TP of RM1.54 a piece.