Share Performance (%)

SAMAIDEN MK (SAMAIDEN MK)

• Keep BUY and MYR1.44 TP (SOP), 13% upside, c.2% FY26F (Jun) yield. We reiterate our positive stance on Samaiden’s outlook following its latest win of three new bioenergy assets, which reinforce the group’s strong position in the renewable energy (RE) space. These assets further strengthen Samaiden’s diversified RE portfolio – spanning solar, biogas, and biomass – and underscore its growing role in driving Malaysia’s clean energy transition.
• Expanding asset portfolio. Samaiden, through its subsidiaries Legasi Green Resources (88% stake), Sumas Energy (51%), and SC Green Solutions (100%), has been shortlisted under the Feed-in Tariff (FiT) 2.0 programme by Sustainable Energy Development Authority (SEDA) Malaysia. The group won two biomass plants with 5.5MW and 11MW installed capacity and one biogas plant with 1.5MW installed capacity. The power purchase agreement (PPA) spans 21 years, with FiT 2.0 structured in two phases – a fixed FiT rate for the initial 10 years, followed by a competitive bidding mechanism within a tariff floor and ceiling set by SEDA for the remaining 11 years of the renewable energy power purchase agreement (RePPA).
• We maintain our earnings estimates for now, pending more details as Samaiden is still fine-tuning its costing (plant capex is generally at MYR10-12m per MW) and funding structure for this new facility. Our back-of-envelope calculations suggest that the three plants could contribute c.MYR11m in annual earnings to Samaiden, based on the group’s effective stakes in the respective projects, and could potentially be valued at around MYR0.38/share. Management is guiding for a high single-digit to low double-digit IRR. These projects are expected to be energised as early as 2028. Meanwhile, its previously secured 7MW biomass project is pending approvals from relevant authorities. Samaiden also stands to benefit from potential EPCC contracts related to other shortlisted FiT 2.0 projects.
• No change to TP and recommendation. Our SOP-derived TP of MYR1.44 is unchanged, incorporating: i) 24x CY25F P/E for its EPCC business, ii) DCF valuation (WACC of 7.8%) for its 60%-owned biogas and biomass assets, and iii) DCF (WACC of 5.9%) for its CGPP solar assets. Our TP includes a 6% ESG premium, based on Samaiden’s 3.3 ESG score (vs the country median of 3.0). We note upside potential to our valuation, as we have yet to incorporate contributions from its Large-Scale Solar 5 (LSS5) asset and newly awarded FiT 2.0 bioenergy projects, pending further clarity.
• Key risks: Discontinuation of solar incentives, competition risks, and higher-than-expected project costs.

Forecasts and Valuation

Trend analysis

In FY24, Samaiden reported total greenhouse (GHG) emissions of c.382tCO2e, a 150% YoY increase due to the inclusion of Scope 3 emissions in its disclosures. Meanwhile, its Scope 1 and Scope 2 emissions saw a significant reduction, decreasing by 28% YoY.

Latest ESG-Related Developments

Samaiden has launched a solar project at Tsun Jin High School, which includes installing a solar PV system with a capacity of about 637kWp and is estimated to avoid around 453tCO2e emissions pa.

The group has partnered with Meta Bright Group to expand business opportunities and accelerate the growth of renewable energy solutions, particularly for the Asia-Pacific mining sector.

ESG Unbundled

Overall ESG Score: 3.3 (out of 4)
Last Updated: 2 Dec 2024

E Score: 3.3 (EXCELLENT)

Samaiden ensures that it complies with environmental laws and regulations to minimise adverse impact to the environment. It is also constantly monitoring its sub-contractors and suppliers to avoid any environmental incidents and hazards. The group’s services are beneficial to the environment over the long run.

S Score: 3.0 (GOOD)

Samaiden has adopted a series of human resources policy and good practices in order to build a conducive work environment and positive workplace culture. The group also funds staff training costs to upskill them.

G Score: 3.3 (EXCELLENT)

Samaiden has applied and adopted the majority of best practices of the Malaysian Code on Corporate Governance. 33% of the board members are female and 67% of the board members are independent non-executive directors. We highlight that the group has adopted the board diversity policy, which considers its diversity in different aspects such as professional experiences, business experiences, skills, knowledge, gender, age, ethnicity, and educational background.

ESG Rating History