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Regional clean energy leader Solarvest Holdings Berhad (Solarvest or the Group) announced its financial results for the first quarter of the fiscal year 2025 (1QFY25), ending 30 June 2024. The Group reported a notable 17.0% year-on-year (YoY) increase in net profit, reaching RM7.8 million compared to RM6.7 million in 1QFY24.
The rise in net profit is attributed to stronger performance and improved margins in the commercial and industrial (C&I) segment, alongside increased electricity sales from its three Large Scale Solar (LSS) 4 plants. This resulted in an improved net profit margin of 10.8% for 1QFY25, up from 4.7% in the previous year.
Revenue for the quarter was RM72.7 million, a decline from RM143.4 million in the same period last year. The drop is primarily due to the completion of LSS4 projects, which are seasonally driven. The Group anticipates revenue contributions from CGPP EPCC projects to commence in the upcoming quarters.
Solarvest has strategically diversified its revenue streams, achieving significant progress in its 5-Year Strategic Roadmap. For 1QFY25, revenue from the Engineering, Procurement, Construction, and Commissioning (EPCC) of solar energy solutions constituted 82.5% of total revenue, down from 98.1% in 1QFY24. Conversely, revenue from electricity sales rose to 9.0%, a significant increase from 0.5% last year. This segment’s revenue grew over nine-fold YoY to RM6.6 million from RM0.7 million, driven by the successful commissioning of LSS4 assets.
The Group also experienced substantial growth in its other segment, which includes solar project development and environmental commodities trading. This segment’s revenue surged to RM4.6 million in 1QFY25, compared to RM0.4 million in 1QFY24, now representing 6.3% of total revenue. Operations and maintenance (O&M) of solar energy systems contributed the remaining 2.2% of revenue, totaling RM1.6 million.
Mr. Davis Chong Chun Shiong, Executive Director and Group Chief Executive Officer of Solarvest, expressed confidence in meeting the Group’s revenue targets for FY25. He highlighted that CGPP EPCC projects are expected to contribute approximately RM296 million, with C&I projects anticipated to generate around RM50 million per quarter.
Solarvest’s asset development strategy is gaining traction, with three Group-owned LSS4 assets projected to generate RM23 million annually over the next 25 years. The Powervest financing program has secured multiple corporate Power Purchase Agreements (PPAs) totaling 100 MWp capacity, expected to generate RM42.7 million in annual revenue once completed. The Group also anticipates continued growth in its other segment and recurring O&M revenue.
As of 31 July 2024, Solarvest’s unbilled EPCC order book stands at RM469 million, with revenues expected to be recognized in FY25 and FY26. The Group is optimistic about expanding its order book, with bids for LSS5 already submitted and expected to be awarded in January 2025.
Solarvest plans to replicate the successful LSS4 strategy in the upcoming LSS5 program, focusing on ownership and development opportunities alongside EPCC projects. Additionally, the Group has signed five Corporate Green Power Agreements (CGPAs) totaling 59.98 MWac with corporate consumers, expected to enhance its recurring revenue stream by the end of 2025.
The Group is also eyeing new growth opportunities with the government’s introduction of the Corporate Renewable Energy Supply Scheme (CRESS) and the potential establishment of Energy Exchange Malaysia (Enegem), which could foster a more open energy market and cross-border electricity trading.
Looking forward, Solarvest aims to achieve a 1GW clean energy asset base by 2028 through greenfield and brownfield investments across Southeast Asia. The Group’s focus includes solar, wind, hydropower, biogas/biomass, energy storage, energy efficiency, and the electric vehicle ecosystem.
Solarvest is actively pursuing opportunities within its 7.77 GWp tender book, comprising 5.70 GWp in Malaysia and 2.07 GWp in international markets, and remains dedicated to converting this pipeline into operational projects, driving further growth and expansion. |
