COMPANY UPDATE
Thursday, July 31, 2025
FBMKLCI: 1,524.50
Sector: Power & Utilities
Samaiden Group Berhad
Three New Asset Wins Under FiT2.0
What’s new?
Samaiden Group Berhad (SAMAIDEN) has won the bid to develop three new bioenergy power generation plants with aggregate gross capacity of 18MW under the latest Feed in Tariff (FiT) 2.0 bidding cycle. The three winning bids were won separately by three subsidiaries comprising: (1) A 1.5MW biogas plant in Bachok, Kelantan (2) A 5.5MW biomass plant in Tangkak, Johor (3) An 11.0MW biomass plant in Kemaman, Terengganu. All three assets are expected to be commissioned by 25 July 2028 and will operate under 21-year REPPAs.
Figure 1: Summary of FiT2.0 Quotas Secured by SAMAIDEN
| Subsidiaries | Type | Location | Stake | Installed Capacity (MW) | Net Capacity (MW) | Basic FiT Rate(RM/kWh) |
|---|---|---|---|---|---|---|
| SC Green Solutions | Biogas | Bachok, Kelantan | 100% | 1.50 | 1.50 | 0.2515 |
| Legasi Green Resources Sdn Bhd | Biomass | Tangkak, Johor | 88% | 5.50 | 4.84 | 0.2880 |
| Sumas Energy Sdn Bhd | Biomass | Kemaman, Terengganu | 51% | 11.00 | 5.61 | 0.2880 |
| Total | 18.00 | 11.95 |
Source: Company, TA Securities
Capex looks manageable
At estimated capex of circa RM10mn per MW, we estimate gross aggregate capex of RM171mn for these three upcoming FiT assets; the gross equity portion of the capex, estimated at RM34mn should be manageable considering the group’s FY27F gross cash of RM120mn.
Potential earnings and valuation impact
Pending further management guidance, our preliminary estimates suggest a potential 20% enhancement to group annual earnings and 10% valuation enhancement once all three FiT assets come online based on high single-digit PIRR and a capex of circa RM10mn per MW. For now, we make no changes to our earnings projections as these assets are only expected to come onstream in FY29F.
Valuation & Recommendation
Maintain Buy at unchanged SOP-derived TP of RM1.38. We continue to like SAMAIDEN as one of the key beneficiaries of an upcycle in RE plant-up underpinned by a solid orderbook, strong net cash position and secured pipeline of RE assets to boost recurring income. Key catalysts: (1) LSS5 and LSS5+ EPCC contract awards; (2) CRESS/CREAM EPCC contract awards; (3) Generation asset wins under LSS5+ and CRESS. Key risks are a sharp rise in raw material cost such as solar modules and delays in project implementation.
Figure 2: Summary of assets – operational and in the pipeline
| Stake | Assets | Type | Capacity (MW) | Net Capacity (MW) | COD | PPA (years) |
|---|---|---|---|---|---|---|
| Operational capacity | ||||||
| 100% | Sunway Nexis | Solar | 0.5 | 0.5 | 2022 | 20 |
| 100% | Yakult | Solar | 0.7 | 0.7 | 2024 | 20 |
| Total operational | 1.2 | 1.2 | ||||
| Upcoming capacity | ||||||
| 100% | Biomass (Tangkak) | Biomass | 7.0 | 7.0 | 2027 | 21 |
| 60% | Biogas (Bachok) | Biogas | 1.2 | 0.7 | 2026 | 21 |
| 100% | CGPP-2 (Legasi Green Energy) | Solar | 13.4 | 13.4 | 2025 | 21 |
| 30% | CGPP-I (Bright Winter) | Solar | 29.9 | 9.0 | 2025 | 21 |
| 100% | LSS5 (Pasir Mas) | Solar | 100.0 | 100.0 | 2027 | 21 |
| 100% | Biogas (Bachok) (FiT2.0) | Biogas | 1.5 | 1.5 | 2028 | 21 |
| 88% | Biomass (Tangkak) (FiT2.0) | Biomass | 5.5 | 4.8 | 2028 | 21 |
| 51% | Biomass (Kemaman) (FiT 2.0) | Biomass | 11.0 | 5.6 | 2028 | 21 |
| Total Upcoming | 169.5 | 142.1 | ||||
| Grand Total | 170.7 | 143.3 | ||||
Source: Company, TA Securities
Figure 3: SAMAIDEN SOP Valuation
| Unit/Assets | Value (RMm) | Basis |
|---|---|---|
| EPCC | 405.2 | 20x CY25F PER |
| CGPP-1 (29.9MW) (30%-owned) | 17.9 | Equity value (DCF, WACC: 5%) |
| CGPP-2 (13.4MW) | 27.1 | Equity value (DCF, WACC: 5%) |
| Biomass Tangkak (7MW) | 36.5 | Equity value (DCF, WACC: 6%) |
| Biogas Bachok (1.2MW) (60%-owned) | 9.6 | Equity value (DCF, WACC: 6%) |
| LSS5 Pasir Mas (100.0MW) | 143.4 | Equity value (DCF, WACC: 5%) |
| Gross SOP | 639.7 | |
| Add: Cash proceeds from warrants | 109.8 | |
| Ex-all SOP | 749.6 | |
| Enlarged share base (m) | 560.0 | |
| SOP value (RM/share) | 1.34 | |
| ESG premium/(discount) | 3.0% | |
| Target Price (RM/share) | 1.38 |
Financial Statements & Ratios
Income Statement
| FYE 30 Jun (RM mn) | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue | 170.8 | 227.2 | 323.7 | 410.0 | 465.2 |
| Core EBITDA | 15.1 | 23.0 | 28.8 | 38.9 | 57.7 |
| Depreciation | (0.3) | (0.7) | (0.9) | (2.0) | (5.9) |
| Net Finance Costs | (1.2) | (1.6) | (3.2) | (5.2) | (7.0) |
| Associates & JVs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Exceptionals | (0.3) | 1.1 | 0.0 | 0.0 | 0.0 |
| Pretax Profit | 13.4 | 21.9 | 24.8 | 31.7 | 44.9 |
| Taxation | (3.3) | (5.8) | (6.6) | (8.4) | (11.9) |
| MI | (0.0) | (0.0) | 0.4 | 0.5 | 0.9 |
| Net Profit | 10.1 | 16.0 | 17.7 | 22.8 | 32.0 |
| Core Net Profit | 10.3 | 14.9 | 17.7 | 22.8 | 32.0 |
Balance Sheet
| FYE 30 Jun (RM mn) | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Non-current Assets | 6.6 | 7.9 | 7.5 | 52.9 | 114.0 |
| PPE | 3.4 | 5.2 | 4.8 | 50.2 | 111.4 |
| Intangibles | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Associates & JCES | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Others | 3.3 | 2.7 | 2.7 | 2.7 | 2.7 |
| Current Assets | 187.9 | 197.2 | 267.4 | 303.3 | 336.8 |
| Inventories | 0.5 | 0.4 | 0.6 | 0.8 | 0.9 |
| Trade and other rcvb | 34.2 | 52.1 | 72.3 | 90.3 | 101.8 |
| Cash and Cash Equivalents | 108.2 | 132.2 | 115.2 | 111.8 | 120.1 |
| Others | 45.0 | 12.5 | 79.3 | 100.5 | 114.0 |
| Total Assets | 194.5 | 205.1 | 274.9 | 356.2 | 450.9 |
| Non-current Liabilities | 4.4 | 3.6 | 11.8 | 47.5 | 94.9 |
| Deferred Tax | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 |
| Deferred Income | 0.0 | 0.0 | 0.0 | 0.0 | 1.0 |
| LT Borrowings | 1.9 | 1.8 | 10.1 | 45.7 | 93.2 |
| Others | 2.2 | 1.5 | 1.5 | 1.5 | 0.5 |
| Current Liabilities | 92.2 | 66.9 | 113.1 | 135.5 | 149.8 |
| Borrowings | 4.5 | 6.6 | 6.6 | 6.6 | 6.6 |
| Trade & other Payables | 70.6 | 56.8 | 72.7 | 87.0 | 96.1 |
| Others | 17.1 | 3.5 | 33.8 | 41.9 | 47.1 |
| Total Liabilities | 96.6 | 70.5 | 125.0 | 183.0 | 244.8 |
| Equity | 97.9 | 134.6 | 149.9 | 173.2 | 206.1 |
| Share Capital | 62.6 | 85.0 | 85.0 | 85.0 | 85.0 |
| Reserves | 35.2 | 49.4 | 64.3 | 87.1 | 119.1 |
| Minority Interests | 0.1 | 0.1 | 0.6 | 1.0 | 2.0 |
| Total Equity + Liabilities | 194.5 | 205.1 | 274.9 | 356.2 | 450.9 |
Cash Flow Statement
| FYE 30 Jun (RM mn) | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Pretax Profit | 13.4 | 21.9 | 24.8 | 31.7 | 44.9 |
| Depreciation | 0.3 | 0.7 | 0.9 | 2.0 | 5.9 |
| Net Interest | 1.2 | 1.6 | 3.2 | 5.2 | 7.0 |
| Working Cap Changes | 24.9 | (41.1) | (47.5) | (25.4) | (22.8) |
| Tax Paid | (3.3) | (5.8) | (6.6) | (8.4) | (11.9) |
| Less: Net Interest | (1.2) | (1.6) | (3.2) | (5.2) | (7.0) |
| Others | (1.8) | 25.8 | 6.6 | 8.4 | 11.9 |
| CF from Operations | 33.4 | 1.4 | (21.9) | 8.3 | 27.9 |
| Capex | (1.8) | (2.1) | (0.5) | (47.4) | (67.0) |
| CF from Investing | (0.4) | 1.8 | (0.5) | (47.4) | (67.0) |
| Dividends | 0.0 | (2.0) | (2.9) | 0.0 | 0.0 |
| Net Change in Debt | 7.6 | 0.7 | 10.1 | 39.4 | 59.0 |
| Others | (13.2) | 23.3 | (1.9) | (3.7) | (11.6) |
| CF from Financing | (5.6) | 22.0 | 5.4 | 35.7 | 47.4 |
| Net Cash Flow | 27.4 | 25.2 | (17.0) | (3.4) | 8.3 |
| Beginning Cash | 69.0 | 96.6 | 121.7 | 104.7 | 101.2 |
| Ending Cash | 96.6 | 121.7 | 104.7 | 101.2 | 109.5 |
Per Share Data
| 2023 | 2024 | 2025F | 2026F | 2027F | |
|---|---|---|---|---|---|
| Core EPS (sen) | 2.3 | 3.3 | 4.0 | 5.1 | 7.1 |
| DPS (sen) | 0.5 | 0.7 | 1.5 | 1.3 | 1.8 |
| Book Value Per Share (RM) | 0.2 | 0.3 | 0.3 | 0.4 | 0.5 |
| NTA Per Share (RM) | 0.2 | 0.3 | 0.3 | 0.4 | 0.5 |
| FCFF Per Share (sen) | 7.4 | 0.7 | (5.0) | (8.7) | (8.7) |
Financial Ratios
| 2023 | 2024 | 2025F | 2026F | 2027F | |
|---|---|---|---|---|---|
| Valuations | |||||
| Core PER (x) | 53.8 | 37.2 | 31.3 | 24.4 | 17.4 |
| Dividend Yield (%) | 0.4 | 0.6 | 1.2 | 1.0 | 1.4 |
| EV/EBITDA (x) | 30.0 | 18.7 | 15.8 | 12.7 | 9.2 |
| P/BV (x) | 5.7 | 4.1 | 3.7 | 3.2 | 2.7 |
| FCFF Yield (%) | 5.9 | 0.6 | (4.0) | (7.0) | (7.0) |
| Profitability Ratios | |||||
| Core EBITDA Margin (%) | 8.9 | 10.1 | 8.9 | 9.5 | 12.4 |
| Core EBIT Margin (%) | 8.7 | 9.8 | 8.6 | 9.0 | . |
| Pretax Margin (%) | 7.8 | 9.6 | 7.6 | 7.7 | 9.6 |
| Core Net Margin (%) | 6.0 | 6.6 | 5.5 | 5.6 | 6.9 |
| ROE (%) | 10.6 | . | 11.9 | 13.2 | 15.7 |
| ROA (%) | 5.3 | 7.3 | 6.4 | 6.4 | 7.1 |
| Liquidity Ratios | |||||
| Current Ratio (x) | 2.0 | 2.9 | 2.4 | 2.2 | 2.2 |
| Quick Ratio (x) | 2.0 | 2.9 | 2.4 | 2.2 | 2.2 |
| Leverage Ratios | |||||
| Gross Gearing (x) | 0.1 | 0.1 | 0.1 | 0.3 | 0.5 |
| Net gearing (x) | (1.0) | (0.9) | (0.7) | (0.3) | (0.1) |
| Interest Coverage (x) | 12.0 | 13.9 | 8.8 | 7.1 | 7.4 |
| Growth Ratios | |||||
| Revenue (%) | 13.3 | 33.0 | 42.5 | 26.7 | 13.5 |
| Core EBITDA (%) | (19.6) | 52.1 | 25.1 | 35.1 | 48.2 |
| Core Net Profit (%) | (23.0) | 44.5 | 18.8 | 28.6 | 40.3 |
ESG Scoring & Guideline
| Environmental | Social | Governance | Average | |
|---|---|---|---|---|
| Scoring | ★★★★ | ★★★★ | ★★★★ | ★★★★ |
| Remark | SAMAIDEN is involved in the EPCC of RE power generation plants and also owns RE generation assets. It is also constantly monitoring subcontractors and suppliers to avoid environmental incidents and hazards. | There are comprehensive occupational safety and health standards in place. There is also comprehensive employee engagement and development plans in place to nurture the talents within the group. | SAMAIDEN applies the majority of the best practices of the Malaysian Code on Corporate Governance. 33% of the board members are female and 67% of board members are independent non-executive directors. |
| ★★★★★ (≥80%) | Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions. | +5% premium to target price |
| ★★★★ (60-79%) | Above adequate integration of ESG factors into most aspects of operations, management and future directions. | +3% premium to target price |
| ★★★ (40-59%) | Adequate integration of ESG factors into operations, management and future directions. | No changes to target price |
| ★★ (20-39%) | Have some integration of ESG factors in operations and management but are insufficient. | -3% discount to target price |
| ★ (<20%) | Minimal or no integration of ESG factors in operations and management. | -5% discount to target price |
Recommendation Guidelines
Sector Recommendation Guideline
- OVERWEIGHT: The total return of the sector, as per our coverage universe, exceeds 12%.
- NEUTRAL: The total return of the sector, as per our coverage universe, is within the range of 7% to 12%.
- UNDERWEIGHT: The total return of the sector, as per our coverage universe, is lower than 7%.
Stock Recommendation Guideline
- BUY: Total return of the stock exceeds 12%.
- HOLD: Total return of the stock is within the range of 7% to 12%.
- SELL: Total return of the stock is lower than 7%.
