• Samaiden is involved in engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems and power plants. It also provides renewable energy (RE) and environmental consulting, and operations and maintenance (O&M) services
• Samaiden is a preferred EPCC contractor for some of the short-listed bidders of Large Scale Solar Phase 4 (LSS4), with good prospects to expand its order book of RM238m as at 31 March 2021
• Samaiden is trading at CY20 PER of 51x compared to local solar power EPCC peer Solarvest at 73x

Solar Power Specialist

Samaiden’s competitive advantages are its ability to provide end-to-end services and excellent track record in completing EPCC projects for PV power plants under LSS1 and LSS2, and ongoing LSS3 works. It has also completed numerous roof-top PV system projects for commercial, residential and community buildings since 2013. Its order book of RM238m, equivalent to 3.1x FY20 revenue, provides earnings visibility.

Strong Management Team

Samaiden’s Group Managing Director, Ir. Chow Pui Hee, has about 19 years of experience in the engineering field, RE and environmental sectors. She is supported by Executive Director Fong Yeng Foon, who has 21 years of experience in water and wastewater treatment industries, and key management team with expertise in RE and environmental sectors.

Potential New Contract Wins for LSS4 Projects

The Energy Commission of Malaysia (EC) announced the short-listed bidders (only locals were allowed to bid) for 30 LSS4 projects with total PV plant capacity of 823 MW on 12 March 2021. Samaiden together with its partner submitted a tender for a LSS4 project but was not short-listed. However, it is a preferred EPCC contractor for several short-listed bidders and could win EPCC contracts for 10-15% of total power plant generation capacity under LSS4.

Typical RE Companies Trading at High PERs

Samaiden is trading at high historical CY20 core PER of 51x, but at a discount to the other listed solar EPCC peer Solarvest at 73x. This is a reflection of good growth prospects for RE contractors as EC is targeting to achieve RE to contribute 20% of Malaysia’s total electricity generation capacity by 2025 (compared to 9% in 2020). Global peer SunPower (SPWR US) is trading at consensus 2021E PER of 94x.

Source: Affin Hwang Research - 12 Apr 2021