KUALA LUMPUR: Solarvest Holdings Bhd climbed over 3.5% after securing a contract worth RM87.5mil for a large-scale solar photovoltaic (PV) plant in Kulim, Kedah.

       The solar energy solutions provider rose 3.57%, or four sen to RM1.16. Solarvest-WA added 2.73%, or 1.5 sen to 56.5 sen.

       Solarvest said its unit Atlantic Blue Sdn Bhd has been appointed the main engineering, procurement, construction and commissioning (EPCC) contractor for the 20.76MW plant and received the project from Energy ES Sdn Bhd (Energy ES).

       Energy ES, the project owner, is principally involved in the development and operation of power generation from renewable energy, solar and others.

       The project will commence upon the execution of the EPCC Agreement and the completion date is based on the Schedule Commercial Operation Date of the solar power purchase agreement.

       It said the contract is expected to contribute positively to the net assets and earnings per share of Solarvest and its group of companies for the financial year ending March 31, 2022 and onwards.

       RHB Research has upgraded Solarvest to “buy” from neutral with a target price of RM1.32 with 18% upside.

       “While 1HFY22F (March) earnings are expected to be affected by stricter lockdown measures in Malaysia – owing to the high number of COVID-19 cases – the recent share price weakness presents an opportunity for investors to trade on further positive news flow from potential contract wins in the coming months, following yesterday’s major contract win,” it said.

       RHB noted that the share price has declined circa 24% in the past month, mainly due to the high number of Covid-19 cases that have led to stricter lockdown measures in Malaysia.

       “These stricter measures have slowed the overall progress billings of Solarvest’s solar EPCC projects. While solar EPCC contract flows remain robust, the lockdown and high solar panel prices will likely continue to undermine nearterm earnings,” it said.