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Regional clean energy leader Solarvest Holdings Berhad (Solarvest or the Group) has announced strong financial results for the second quarter (2QFY25) and first half of the fiscal year (1HFY25), ending 30 September 2024.
For 1HFY25, Solarvest recorded its highest-ever first-half net profit of RM17.0 million, marking a 22.7% year-on-year increase from RM13.9 million in the previous year’s corresponding period. The Group also reported a record gross profit of RM55.2 million, driven by a reduction in solar panel costs, which contributed to improved margins and set a positive outlook for continued long-term growth.
In 2QFY25, the company’s profit after tax and non-controlling interest (net profit) rose by 28.1%, reaching RM9.2 million, compared to RM7.2 million in the same quarter of the previous year. This growth was fueled by improved margins in the commercial and industrial (C&I) segment, benefiting from lower solar panel costs and stronger electricity sales.
Solarvest posted a revenue of RM103.9 million in 2QFY25, a decline from RM139.9 million in 2QFY24. The drop was primarily due to the completion of all large-scale solar (LSS4) projects, which had contributed significantly in the prior year. However, the Group has since launched new large-scale solar projects under the Corporate Green Power Programme (CGPP), which is expected to boost revenue in the upcoming quarters.
The company’s efforts to diversify its revenue streams have been successful, with significant growth seen in recurring income and green energy solutions. Solarvest’s commitment to its 5-year Strategic Roadmap, focused on diversification and long-term sustainability, has been evident. The core engineering, procurement, construction, and commissioning (EPCC) segment remains the largest revenue contributor, representing 86.8% of total revenue in 2QFY25. Additionally, revenue from electricity sales grew to 6.3%, up from 1.3% in 2QFY24, and the operations & maintenance (O&M) segment expanded to 2.7%, compared to 0.9% during the same period.
Solarvest’s Executive Director and Group CEO, Mr. Davis Chong Chun Shiong (???), commented, “We have achieved our highest-ever unbilled order book for EPCC projects, totaling RM961 million. This positions us for a strong financial performance in the second half of FY2025, supported by the launch of CGPP projects and continued profit growth. Looking ahead, we are optimistic about participating in the upcoming LSS5 project, which is expected to offer a minimum of 2GWac in solar project opportunities.
He added, “With our comprehensive expertise across the clean energy value chain and a focus on asset development and recurring income, we are well-positioned to lead the regional transition to renewable energy. Our strategic focus on innovation and diversification remains key to our vision of becoming a leading player in the clean energy sector, driving sustainable growth and long-term value.”
Solarvest’s LSS4 assets are expected to generate RM23 million annually in electricity sales over the next 25 years. Furthermore, the company’s Powervest programme has secured multiple corporate Power Purchase Agreements (PPAs) with a total capacity of 102 megawatts peak (MWp), which will generate RM43.7 million in annual income once completed within the next 12 to 18 months.
Looking ahead, Solarvest plans to further diversify its revenue base by expanding across key business segments, including replicating the success of the LSS4 strategy in the upcoming LSS5 program. The Group is also focusing on growing its order book, with a 2GW LSS5 quota and additional 800 MW from the Net Energy Metering (NEM) and NEDA programmes.
Solarvest is advancing efforts to convert its substantial tender book, which includes 5.70 GWp in Malaysia and 1.48 GWp in international markets, into operational projects. This will help strengthen its position in both domestic and global markets as the company continues to push for growth and leadership in the renewable energy sector. |
