KUALA LUMPUR (Aug 22): Solarvest Holdings Bhd’s net profit rose by 56.54% to RM6.70 million for the first quarter ended June 30, 2023 (1QFY2024), from RM4.28 million a year earlier, due to higher revenue contributions from progress of Large Scale Solar 4 (LSS4) projects.

Earnings per share for the quarter increased to one sen from 0.6 sen for 1QFY2023, said the group in a bourse filing on Tuesday (Aug 22).

Quarterly revenue more than doubled to RM143.39 million from RM52.66 million, primarily due to higher progress of LSS4 projects.

Solarvest said that the outlook for renewable energy (RE) in Malaysia remains positive, underpinned by the government's effort to increase RE capacity to 70% of the country's total energy mix from 40%, and achieve net zero by 2050.

Additionally, the group, via its wholly-owned subsidiaries, is part of the three consortiums selected by the Energy Commission under the Corporate Green Power Programme (CGPP), with total generation capacity of nearly 90 MW.

“The three CGPP solar plants scheduled to be commissioned in 2025 will add to the current RE asset portfolio of the group, contributing positively to its net earnings in the long run,” said Solarvest.

Solarvest added that as at June 30, its unbilled order book stood at RM457 million, which will be progressively recognised in FY2024 and FY2025.

It will continue to grow its order book and capitalise on the imminent awards of up to 800 MW CGPP projects and the National Energy Transition Roadmap or NTER.

Meanwhile, under the Powervest programme, the group has secured cumulative capacity of 83.6 MW from multiple corporate power purchase agreements.

This is expected to contribute RM37 million in annual recurring revenue upon full completion within the next 12 to 18 months, said Solarvest.

“Barring any unforeseen circumstances, the board is of the view that the group's overall performance would remain satisfactory for the coming financial year.”

At Tuesday's noon break, Solarvest shares had fallen one sen or 0.78% to RM1.27, valuing the group at RM848.04 million.

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