PETALING JAYA: Solarvest Holdings Bhd is expected to face only limited cost pressure from China’s export value-added tax (VAT) as the group had earlier secured 2GW of photovoltaic modules at fixed prices, leaving only about 600MW (equivalent of an estimated RM1.5 billion order book) exposed to the 9% levy.
Berjaya Research Sdn Bhd said the impact is also potentially cushioned by the stronger ringgit, while the balance of its panel procurement is subject to pass-through provisions that allow future project pricing adjustments.
Further, Solarvest is well positioned to ride near-term earnings growth from stronger contributions from large-scale solar (LSS) projects and the Corporate Green Power Programme (CGPP).
This is backed by an outstanding order book as at end-December and expectations of further replenishment that could lift its total jobs in hand beyond RM2 billion by FY26 amid continued project wins and an expanding solar and battery energy storage tender pipeline.
Berjaya Research said Solarvest’s nine-month FY26 results came in broadly in line with expectations, accounting for 53.9% of full-year revenue and 70.2% of Patami forecasts.
The research firm said the recent weakness in its share price appears excessive, largely driven by market concerns over China’s move to scrap export VAT rebates on photovoltaic products and gradually reduce battery-related rebates from April, ahead of a full removal by 2027.
On a year-on-year basis, Berjaya Research said Solarvest’s Q3 FY26 revenue rose 33.8% to RM181.2 million from RM135.4 million, underpinned by ongoing execution of CGPP projects and the rollout of LSS5 works, while Patami climbed 46.3% to RM21 million, supported by higher electricity sales and improved contributions from its investment holdings.
On a quarter-on-quarter basis, Solarvest’s third-quarter FY26 revenue edged up 6.9% to RM181.2 million from RM169.5 million, lifted by contributions from utility-scale projects following the commencement of LSS5 works alongside ongoing CGPP execution, while PATAMI increased 12.3% to RM21 million; earnings forecasts for FY26 and FY27 remain unchanged.
“We maintain our Buy call on Solarvest with an unchanged target price of RM3.51, based on a FY27 sum-of-parts valuation, as the stock’s current valuation appears increasingly attractive at a forward price-to-earnings ratio of 19 times, below its one-year average.
“This is supported by firm earnings visibility from a healthy order book, growing recurring income from solar assets and continued expansion of its customer base through integrated energy solutions. Key risks include potential project delays, valuation pressures and weaker-than-expected order replenishment,“ Berjaya Research said.
The Sun Malaysia
