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gemfinder

gemfinder | Joined since 2019-11-23

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Stock: [MFCB]: MEGA FIRST CORPORATION BHD

2021-03-13 15:48 |

Post removed.Why?

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Stock: [TOPGLOV]: TOP GLOVE CORPORATION BHD

2021-03-13 14:58 |

Post removed.Why?

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Stock: [SLVEST]: SOLARVEST HOLDINGS BERHAD

2021-03-13 13:37 | Report Abuse

Beter switch to kpower la

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Stock: [SLVEST]: SOLARVEST HOLDINGS BERHAD

2021-03-13 12:49 | Report Abuse

Oredi too high. I even all sold laio. Anyone want exposure to silar, pls switxh to kpower

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Stock: [SLVEST]: SOLARVEST HOLDINGS BERHAD

2021-03-13 12:45 | Report Abuse

4 March 2021 Clean Energy | Solar Power
Solarvest (SOLAR MK)
All Eyes On Upcoming LSS4 Award; NEUTRAL
Neutral (Maintained)
Target Price (Return): MYR2.15 (-10%)
Price: MYR2.39
Market Cap: USD249m
Avg Daily Turnover (MYR/USD) 25.2m/6.30m
Analysts
Loo Tungwye
+603 9280 8683
loo.tungwye@rhbgroup.com
Lee Meng Horng
+603 9280 8866
lee.meng.horng@rhbgroup.com
Share Performance (%)
YTD 1m 3m 6m 12m
Absolute 26.5 (19.5) 32.8 97.5 113.4
Relative 30.0 (18.7) 36.4 93.9 107.2
52-wk Price low/high (MYR) 0.54 – 3.11
Source: Bloomberg
 NEUTRAL, unchanged TP of MYR2.15 implies 10% downside. We
emerged from Solarvest’s results briefing feeling somewhat positive on its
prospects. The LSS@MEnTARI (LSS4) award could be out in early March,
which may provide abundant solar engineering, procurement, construction
and commissioning (EPCC) jobs for the industry. While the outlook remains
bright, we believe that its 39x fully-diluted (FD) FY23F (Mar) P/E has priced
in expectations of a major EPCC contract win from LSS4.
 3QFY21 results recap. The commercial and industrial (C&I) segment
remains strong, as the group secured MYR186.9m (+31% YoY) of new
orders in 9MFY21. Its total outstanding orders are currently valued at
MYR197.5m, of which 98.5% is from C&I contracts. 3QFY21 core profit
jumped 12.0% QoQ, on the increase in EPCC revenue (+12.4%). After the
easing of movement restrictions, EPCC works on existing projects
progressed faster in 3QFY21.
 LSS@MEnTARI award could be out soon. Solarvest has submitted bids
for 1,000MW in EPCC projects, and targets to win c.200-300MW (total
contract value of c.MYR500-600m). As for asset ownership, the group has
submitted a total of 50MW solar assets. As a 50MW LSS4 solar plant owner,
it could potentially book additional profits of c.MYR8m pa. However,
earnings contributions from the solar asset may only kick in from FY24
onwards.
 Overseas expansion update. In Taiwan, the group is aiming to win solar
EPCC contracts and own a solar asset. Currently, Solarvest is working
together with its Taiwan partner and hopes to see some news flow by 3Q21.
Management shared that the group is targeting c.90MW of EPCC projects,
and aims to own a 40MW solar asset. Assuming the group and its partner
(50% stake) wins 90MW in EPCC works, we estimate that earnings could
increase by c.MYR3-5m pa in FY22-23F. Nevertheless, we have yet to
impute any contribution from this into our forecast as details remain scarce.
 No changes to earnings forecasts and TP. We make no change to our
NEUTRAL call, as Solarvest’s current P/E of 39x FD FY23F already prices
in the expectation of major (100-200MW) LSS4 EPCC contract wins. While
the valuation is slightly above the global regional peer average of 35x, we
note that our earnings forecasts and TP only assumes c.100MW of LSS4
EPCC project wins. Our FY23F earnings could be revised upwards by
another 23%, should the group win its targeted 200MW of EPCC works –
which has been partially factored into its current valuation, in our opinion.
 Key upside risks to our call include higher-than-expected contract wins
and positive developments from its overseas venture in Taiwan and the
Philippines. The converse of these circumstances would present downside
risks.
Source: Company data, RHB
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Solarvest Holdings Berhad (SOLAR MK )
Price Close
Relative to FTSE Bursa Malaysia KLCI Index (RHS)
Forecasts and Valuation Mar-19