SAMAIDEN: Renewable Energy Player Delivers Strong Q1 Results, Outlook Remains Positive
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
A key player in the renewable energy sector has reported robust financial performance for its first quarter of FY26, with results broadly meeting market expectations. The company recorded revenue of MYR88.1 million, marking a significant 78.4% year-on-year (YoY) increase, although experiencing a 34.7% quarter-on-quarter (QoQ) decrease. Core profit for the quarter stood at MYR6.2 million, reflecting an 85.7% YoY surge and a 7.9% QoQ improvement. These figures collectively represent 22% of both the analyst’s and consensus’ full-year forecasts.
The strong year-on-year earnings growth was primarily driven by higher topline contributions stemming from the accelerated progress of its utility-scale projects. The pre-tax profit (PBT) margin also saw an improvement, rising to 10.5% from 8.8% in the corresponding quarter of the previous fiscal year. However, this positive impact was partially mitigated by a higher effective tax rate, which increased to 33.7% from 23.7% in 1QFY25. Despite this, the core earnings margin improved slightly to 7% from 6.8% in 1QFY25.
Future Outlook and Strategic Growth
Looking ahead, the company’s outlook remains highly positive, underpinned by a robust orderbook of approximately MYR617.5 million as of September. This substantial orderbook provides strong earnings visibility, with bottomline momentum expected to build up in subsequent quarters as more Corporate Green Power Programme (CGPP)-related EPCC works are recognised. The group is also making steady progress on Large-Scale Solar (LSS) 5 and LSS5+ projects and continues to actively bid for new renewable energy tenders.
The broader sector prospects are bright, buoyed by Malaysia’s supportive pro-renewable energy policy landscape. Key initiatives driving this growth include the Green Technology Financing Scheme (GTFS 5.0), the planned introduction of a carbon tax in 2026, the LSS6 programme, and the Solar Accelerated Transition Action Programme (Solar ATAP). These collective efforts are anticipated to stimulate renewable energy investments and provide a multi-year growth runway for the company, solidifying its position as a leading beneficiary of Malaysia’s clean energy transition agenda. The investment bank maintains its “BUY” recommendation, noting a 13% upside potential based on its new target price methodology.
