SAMAIDEN: Solid Project Pipeline Fuels Optimistic Outlook, ‘BUY’ Rating Affirmed
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
TA Securities has reiterated its “BUY” recommendation for Samaiden Group Berhad, maintaining a target price of RM1.96. The investment bank’s positive outlook is driven by the company’s robust order book, strong pipeline of renewable energy projects, and anticipated contributions from ongoing assets. This confidence comes as the company continues to strategically expand its presence in the burgeoning renewable energy sector.
Performance Review
As of the end of the first quarter of FY26, Samaiden reported an outstanding Engineering, Procurement, Construction, and Commissioning (EPCC) order book of RM617.5 million, which represents 1.7 times its FY25 revenue. Key ongoing projects, including CGPP and LSS4/LSS5 initiatives, are progressing well, with CGPP projects already over 50% completed. Management indicates that two of its CGPP assets, with capacities of 13.4MW (100%-owned) and 29.9MW (30%-owned), are approximately 90% complete and are on the verge of reaching their Initial Operation Date (IOD). These assets are projected to begin contributing to earnings by 3QFY26, with an estimated RM2.3 million annual earnings contribution for FY27.
Future Outlook and Growth Drivers
Samaiden is actively pursuing an ambitious target of securing RM1 billion in new order books by the first half of FY26. This growth is expected to be fueled by several key initiatives:
Large Scale Solar (LSS) Projects: The company is currently bidding for two additional LSS5 EPCC projects, which could add at least 100MW to its job pipeline. Furthermore, Samaiden is conservatively targeting a 10% share (200MW) of the total 2GW quota under the upcoming LSS5+ program.
East Malaysia Expansion: The group is bidding for up to 100MW in EPCC works for the recently concluded LSS Sarawak.
Feed-in-Tariff (FiT) Program: Samaiden is well-positioned to capitalize on an additional 300MW quota under the FiT program, seeking new assets across biogas, biomass, or minihydro, alongside new EPCC prospects.
Upcoming Assets: Beyond the CGPP assets, the company’s wholly-owned 100MW LSS5 (Pasir Mas) and 70%-owned 100MW LSS5+ (Segamat) plants are slated to come online by October 2027, expected to contribute an additional RM4.4 million annually to recurring income for FY28.
Valuation and Risks
TA Securities maintains its “BUY” call with a target price of RM1.96, valuing Samaiden’s EPCC business at 20 times PER, in line with its historical mean. The firm highlights Samaiden as a primary beneficiary of the renewable energy upcycle, supported by its robust order book, strong net cash position, and growing pipeline of RE assets. Key catalysts include further LSS5, LSS5+, CRESS/CREAM EPCC contract awards, and new power generation asset wins. However, potential risks include a sharp rise in raw material costs, particularly solar modules, and delays in project implementation.
