Kuala Lumpur, 25 November 2024 – Regional clean energy expert, Solarvest Holdings Berhad (“Solarvest” or the “Group”) has today announced its second quarter (“2QFY25”) and six months financial results for the period ended 30 September 2024 (“1HFY25”).
In 1HFY25, Solarvest reported its highest-ever first-half net profit of RM17.0 million, a 22.7% YoY increase from RM13.9 million in the previous year’s corresponding period (“1HFY24”). The Group also observed an unprecedented gross profit of RM55.2 million, its highest to date, largely attributed by the reduction in solar panel costs. Solarvest expects this positive momentum to continue over the coming years, strengthened the Group’s margins for long-term growth.
In 2QFY25, Solarvest posted a 28.1% year-on-year (“YoY”) increase in profit after tax and non-controlling interest (“net profit”), reaching RM9.2 million from RM7.2 million in the preceding year’s corresponding quarter (“2QFY24”). This growth was driven by improved margins within the commercial and industrial (“C&I”) segment, supported by a reduction in solar panel costs and sales of electricity.
The Group recorded revenue of RM103.9 million for 2QFY25, compared to RM139.9 million in 2QFY24. The softer revenue was largely attributed to the completion of all the LSS4 projects, which were still actively ongoing in the prior year’s corresponding quarter. Nevertheless, the Group has commenced some new large-scale solar projects under the Corporate Green Power Programme (“CGPP”) during the quarter which will contribute positively to revenue in the coming quarters.
Solarvest’s strategic progress in diversifying its revenue streams has driven significant growth in recurring income and green energy solutions, reflecting its commitment to its 5-year Strategic Roadmap to prioritise diversification and long-term sustainability. The core engineering, procurement, construction, and commissioning (“EPCC”) of solar energy solution segment remains the primary revenue driver, representing 86.8% in 2QFY25 of total revenue. Revenue from the electricity sales segment rose to 6.3% in 2QFY25 from 1.3% in 2QFY24, while the operations & maintenance (“O&M”) segment grew to 2.7% from 0.9% during the same period. Similarly, the other business segment, which encompasses solar project development, commodities trading and other green energy solutions grew to 4.3% in 2QFY25 from 0.4% in 2QFY24.
Executive Director and Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong (张俊雄) said, “To date, the Group’s has recorded its highestever unbilled order book of EPCC projects amounting to RM961 million. With this, a strongest-ever financial performance is expected in the second half of FY2025, supported by the commencement of CGPP and improved profit growth. Looking ahead, we are optimistic about participating in the upcoming LSS5 project, which is expected to offer a minimum of 2GWac in solar project opportunities.The upcoming LSS5 announcement is going to mark the largest utility programme in the country’s history.”
“With our proven expertise across the clean energy value chain, expansion into highpotential markets and focus on EPCC, asset development, and recurring income generation, we are well-positioned to lead the regional transition to renewable energy. Our strategic focus on innovation and diversification underpins our vision of becoming a key player in the clean energy sector, driving sustainable growth and delivering long term value.”
“Our LSS4 assets has been contributing positively to our recurring income stream, which are projected to generate RM23 million annually in electricity sales for the next 25 years. In addition, our Powervest programme has secured multiple corporate Power Purchase Agreements (“PPAs”) with a total capacity of 102 megawatt peak (“MWp”). Once completed within the next 12 to 18 months, these agreements are expected to generate RM43.7 million in annual income.”
“Moving forward, we will continue to diversify our revenue base through targeted expansion across key business segments. This includes replicating the success of our LSS4 strategy in the upcoming LSS5 program, pursuing both asset ownership and development opportunities alongside EPCC projects. The Group will continue to grow its order book, capitalising on the 2 gigawatts (“GW”) LSS5 quota, coupled with additional 800 MW quota allocations under the Net Energy Metering (“NEM”) and the NEDA programmes.”
At the same time, the Group is advancing efforts to capitalise on its tender book, which includes a significant pipeline of 5.70 GWp in Malaysia and 1.48 GWp in international markets. By prioritising the conversion of these 7.18 GWp opportunities into operational projects, Solarvest aims to drive further growth and strengthen its presence in both domestic and overseas markets.