Solarvest Holdings Berhad: Earnings Surge, New EPCC Deal Fuels Momentum

Solarvest Holdings Berhad (KL:SLVEST) has delivered a striking financial performance for the second quarter of FY 2026, with a net profit of RM18.73 million—a 104.8 % year‑on‑year increase—and revenue climbing 63.1 % to RM169.47 million. The company’s operating results mirror a broader trend in Malaysia’s renewable‑energy sector, as the Corporate Green Power Programme (CGPP) continues to inject capital into utility‑scale solar projects.

Earnings Breakout Explained

  • Profitability: The firm’s core net profit of RM34.60 million over the first half of FY 2026 represents a 1.03‑fold rise versus the previous year. This surge is largely attributable to the acceleration of multiple CGPP‑backed projects and the imminent completion of several plants, which are expected to lift earnings further.
  • Revenue Growth: Revenue increased 74 % to RM372.1 million in the first six months, a figure that underscores the company’s expanding generation portfolio and the rising demand for clean energy in the domestic market.
  • Order Book Strength: Solarvest reported an unbooked order value of RM1.326 billion as of September 30, a robust pipeline that signals continued upside potential.

The market has responded positively. Investment analysts have set a target price of RM3.49 and issued a buy recommendation, citing the company’s solid fundamentals and its 37.95‑fold price‑to‑earnings ratio as evidence of undervaluation relative to industry peers.

New EPCC Contract Boosts Future Cash Flow

In a decisive move, Solarvest secured a RM320 million engineering, procurement, construction, and commissioning (EPCC) contract for the construction of a 99.99 MW photovoltaic plant in Kampar, Perak, under the Large‑Scale Solar 5 (LSS5) programme. The project, awarded by Wawasan Demi Sdn Bhd to Solarvest’s subsidiary Atlantic Blue, is slated for completion by 30 October 2027. This contract not only enhances Solarvest’s project pipeline but also reinforces its reputation as a capable EPC contractor in the region.

The EPCC deal is complemented by a separate RM320 million contract for a 99.99 MW solar farm in Kampar, reinforcing the company’s focus on high‑capacity projects that align with Malaysia’s renewable‑energy targets.

Strategic Implications

Solarvest’s performance underscores a few critical points for investors and industry observers:

  1. Revenue Diversification: The company’s ability to generate substantial revenue from multiple large‑scale projects reduces reliance on any single source of income.
  2. Operational Efficiency: A 63 % revenue jump with a 105 % profit increase indicates effective cost management and scale benefits.
  3. Pipeline Depth: The unbooked orders and new EPCC contracts suggest that the company is poised for sustained growth beyond FY 2026.

Conclusion

Solarvest Holdings Berhad has convincingly demonstrated its capacity to translate a robust project pipeline into tangible financial results. The company’s strategic focus on CGPP‑backed projects and its recent EPCC contracts position it well to capitalize on Malaysia’s aggressive renewable‑energy agenda. Investors should note the firm’s strong earnings momentum, solid order book, and clear trajectory toward higher output—a combination that challenges any remaining doubts about its valuation and future prospects.