Solarvest bags RM154m worth of contracts under LSS4

KUALA LUMPUR (March 10): Clean energy specialist Solarvest Holdings Bhd has bagged three engineering, procurement, construction, and commissioning (EPCC) contracts worth a combined RM154.4 million to develop large-scale solar photovoltaic plants in Perak under the large-scale solar 4 (LSS4) scheme.

The three Perak-based projects will have an accumulated capacity of 40 megawatts (MW), said Solarvest.

In a bourse filing on Thursday (March 10), Solarvest said one of the projects was awarded by Teja 1 Sdn Bhd, with a capacity of 15MW and valued at RM54.4 million. It will be developed in Kampar and is expected to be commercially operational by Dec 14, 2022.

The second project, which will also be developed in Kampar, was awarded by Teja 2 Sdn Bhd, with a capacity of 10MW and valued at RM42.8 million, and is expected to be commercially operational by June 14, 2023.

The third project, awarded by Kellie Energy Sdn Bhd, will have a capacity of 15MW and is valued at RM57.2 million. It will be developed in Kinta and is expected to reach commercial operations by Dec 14.

All three projects were awarded by Taiping Solar Sdn Bhd via its special purpose vehicles — Teja 1, Teja 2 and Kellie Energy — to Solarvest’s wholly-owned subsidiary Atlantic Blue Sdn Bhd, the filing showed.

In a separate statement, Solarvest executive director and group chief executive officer Davis Chong Chun Siong said with the new contracts, the group's total unbilled order book now stands at RM742 million, the "majority of which will be recognised by [the] end of 2024, providing encouraging earnings visibility for the group”.

Chong also said Solarvest plans to maintain its market leadership as a clean energy solutions provider in the EPCC space as it is one of the key growth pillars in its five-year strategic roadmap.

“With the request for proposal (RFP) of LSS5 set to begin this quarter, our attention is now focused on developing a strong pipeline under the new scheme.

“In addition to that, we also see LSS5 as a good opportunity to build up our renewable energy asset portfolio as we work towards our goal of 30% recurring income, which is in line with the second pillar of growth under our five-year plan,” he said.

At 2.52pm, Solarvest shares were up half a sen or 7.3% at 73.5 sen, valuing the clean energy group at RM490.65 million based on 667.55 million shares while trading at 38.68 times historic earnings, according to Bloomberg data. Solarvest shares have declined by 41.2% year to date from RM1.25.

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