PETALING JAYA: Solarvest Holdings Bhd could book about 7% margins from its recent RM154mil contract under the fourth cycle of the large-scale solar programme (LSS4) in Perak.

       Maybank IB Research expects Solarvest to receive RM10.8mil in net profit contribution to its financial year 2023 (FY23) and FY24 from the engineering, procurement, construction and commissioning (EPCC) contracts to develop the project.

       The recent contract added 26% to Solarvest’s order book to RM742mil, which is 3.3 times its FY21 revenue.

       Despite the recent contract win, the research house has maintained its earnings forecast on Solarvest for FY23 and FY24.

       “The latest contracts meant that Solarvest has won eight EPCC jobs for LSS4 amounting to RM572.6mil, to be completed by 2023.

       “Given that the order book replenishment falls within our assumptions, we have made no changes to our earnings forecasts,” it said in a report yesterday.

       Solarvest is one of the downstream solar photovoltaic (PV) plant players in Malaysia that has installed a cumulative capacity of 360MW of solar systems.

       The company has a five-year plan to build a 30% recurring income portfolio from its own renewable energy asset portfolio.

       The 1MW solar PV plant in Pokok Sena, Kedah belongs to the company and it expects to increase its solar power generation portfolio by an additional 50MW by end-2023.

       “In addition, we also see LSS5 as a good opportunity to build up our renewable energy asset portfolio as we work towards our goal of 30% recurring income, which is in line with the second pillar of growth under our five-year plan,” Solarvest executive director and group chief executive officer Davis Chong had said recently.