Kuala Lumpur, 28 February 2024 – Regional clean energy expert, Solarvest Holdings Berhad (“Solarvest” or the “Group”) has today announced its third quarter (“3QFY24”) and nine months financial results for the period ended 31 December 2023 (“9MFY24”).
For the 9MFY24 period, revenue has surged 56.8% YoY to RM395.7 million as compared to RM252.3 million from the previous year’s corresponding period (“9MFY23”). This performance surpassed the Group’s FY23 revenue of RM365.5 million. Similarly, net profit for 9MFY24 witnessed a significant 69.2% YoY increase from RM14.5 million in 9MFY23 to RM24.5 million, exceeding FY23 net profit of RM19.7 million.
In 3QFY24, Solarvest recorded revenue growth of 10.7% year-on-year (“YoY”) to RM112.4 million, as compared to RM101.5 million reported in the previous year’s corresponding quarter (“3QFY23”).
In tandem with the top-line growth, profit after tax and non-controlling interest (“net profit”) rose 104.7% to RM10.7 million from RM5.2 million in 3QFY23, marking the third consecutive quarter of record-breaking quarterly net profit. The improved net profit and margins are largely contributed by a favourable solar panel price trend and increased Commercial and Industrial (“C&I”) projects and asset development, which typically carry higher profit margins.
The EPCC segment remains the Group’s main revenue contributor, contributing RM104.1 million or 92.6% of the Group’s revenue. During the quarter under review, large-scale solar (“LSS”) EPCC revenue recorded lower at RM43.5 million compared to previous quarters as the Group has completed seven out of eight of its LSS4 EPCC projects as of 3QFY24. LSS projects are inherently seasonal and the Group is looking forward to the commencement of LSS5 bidding to boost its LSS EPCC order book.
Meanwhile, all three of Solarvest-owned LSS4 assets with a cumulative installed capacity of 67.3 megawatts peak (“MWp”) are fully operational as of 3QFY24. This led to an over eight-fold surge in the Group’s electricity sales segment to RM3.4 million from RM0.4 million last year. This is expected to strengthen Solarvest’s recurring earnings from the sales of electricity, providing the Group with better income visibility.
Operations and maintenance (“O&M”) of solar energy systems and other activities represent the remaining 4.3% or RM4.9 million of revenue.
Executive Director and Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong (张俊雄) said, “We are excited to announce another record-breaking results, extending our outstanding performance for three quarters in a row. We are confident that this positive momentum will continue into the next two quarters, paving the way for a strong and exceptional FY24 and upcoming quarters.”
“Our EPCC unbilled order book remained healthy at RM242.0 million, consistently replenished by the C&I and residential rooftop segment. Also, we begin to see the addition of CGPP EPCC project opportunities into our orderbook in 4QFY24. We are poised to capitalise on the CGPP capacity of approximately 443.4 MWp, yielding us with more than RM1 billion in potential revenue. This is on top of the exciting new opportunities arising from the Malaysian government’s announcement of 2.8 gigawatt (“GW”) renewable energy quota.”
Apart from EPCC contracts, the full operation of the Group’s three LSS4 assets will generate long-term, stable recurring earnings of RM9 million in profit after tax annually through electricity sales over the next 25 years.
On asset development, the Group has also successfully clinched multiple corporate power purchase agreements (“PPAs”) with a cumulative capacity of approximately 116 MWp through its financing programme, Powervest. These PPAs are projected to generate around RM41.0 million in additional annual recurring revenue upon full project completion within the next 12 to 18 months.
Looking forward, Solarvest’s prospects remain exciting, fueled by the 2.0 GW cross-border trading with Singapore and development of a 2.5 GW hybrid hydro-floating solar PV system under the National Energy Transition Roadmap (“NETR”). This adds to Solarvest’s growing tenderbook, which currently stands at a combined 4.6 gigawatt-peak (“GWp”) of projects, with 2.8 GWp located in Malaysia and 1.7 GWp overseas.
These upcoming opportunities, coupled with the newly announced quotas, pave a robust business pipeline for Solarvest to continue strengthening its leadership position in the renewable energy industry.