KUALA LUMPUR: Renewable energy (RE) and environment solutions provider Samaiden Group Bhd is venturing into Vietnam this year to tap lucrative RE projects in the country.
Group managing director Ir Chow Pui Hee said while Malaysia contributed almost 100 per cent to its revenue, Samaiden planned to make its first overseas venture to Vietnam this year.
"We have set our sights on Vietnam, which offers a plethora of potential as the Southeast Asia region's fastest-growing RE market and second-largest electricity consumer. We always believe the RE industry in Vietnam has good prospects," she told the New Straits Times.
Chow said Samaiden had set up a new company for the venture in Vietnam last year.
"We have constantly been eyeing RE projects in that market. We welcome any business partner or party interested in exploring with us via a joint venture or another business set-up," she added.
Chow did not furnish any estimates or contracts currently under negotiations.
However, it is believed that Samaiden would be venturing into Vietnam with Japan-based Chudenko Corporation, its new substantial shareholder.
Samaiden signed a business collaboration agreement with Chudenko in March this year to explore RE projects in Malaysia and overseas markets.
Chudenko previously subscribed for 16.8 million new ordinary shares of Samaiden at RM1.27 each via a private placement, representing a 7.27 per cent stake.
After that, Chudenko acquired 18.2 million ordinary shares from its co-founder Fong Yeng Foon, which further increased its stake to 15.15 per cent.
Chudenko has a vast domestic reach in Japan, with over 68 offices and an overseas presence with subsidiaries in Malaysia and Singapore.
In recent years, Chudenko had been active in the overseas investment of renewable energies.
It is listed on the Tokyo Stock Exchange (TSE) with a market capitalisation of 126.7 billion yen (equivalent to RM4.6 billion).
Last year, Vietnam announced a plan to have RE account for three-quarters of its national power production capacity by 2045.
It also hoped to achieve 70 per cent of actual production through renewable sources under its commitments made during the United Nations Climate Change Conference 2021 (COP 26) in November.
Vietnam is committed to reaching net-zero emissions by 2050 and will shift from fossil fuels to clean and renewable energy.
Under a 10-year Power Development Plan, the country plans to increase wind and solar power capacity by 333 per cent and 167 per cent respectively.
It was reported that its deputy minister of science and technology Tran Van Tung said Vietnam had a big potential for RE development with around 217 gigawatts of onshore wind power, 160 gigawatts of offshore wind power and 434 gigawatts of solar power, including rooftop panels.
"Vietnam needs to push investment in new and green technologies and dedicate resources to developing these with due technology transfers," Tung said in a local daily.
Chow said Samaiden remainrf consistent in growing its recurring income streams and plans to increase investments in RE assets and power plants.
She said there was a significant investment opportunity in renewable energy assets such as solar, biogas and biomass in the Asean region.
Samaiden is currently developing a 1.2MW biogas power plant in Kelantan, with expected completion by November 2023.
The power plant is to generate power to sell electricity to the power grid for 21 years.
The company is also developing a 531kWp grid-connected rooftop solar photovoltaic power system for Sunway Nexis.
Upon completion, Samaiden will operate and maintain the rooftop solar PV system and supply electricity to Sunway Nexis for 20 years.
On the corporate front, Samaiden has raised RM25.3 million after completing a private placement in February 2022.
This strengthened the company's war chest and enhanced the ability to seize opportunities in RE asset investments, Chow said.
As of Dec 31 2021, Samaiden's balance sheet remains healthy, with total cash of RM39.2 million exceeding total borrowings of RM14.6 million. As a result, the company is in a net cash position of 10.8 sen per share.
Samaiden has secured new contracts totalling RM299.9 million in the current financial year ending June 30 2022.
This has expanded the company's orderbook to RM410.2 million, with most works expected to be carried out within the next 12-24 months.
"This will contribute to Samaiden's revenue in the coming quarters. Our orderbook is equally balanced across commercial and large-scale solar projects while our tender activities remain active. As a result, we expect our order flows to remain solid in the coming months," Chow said.
For the first half (1H) of FY22, Samaiden's revenue surged 176.5 per cent year-on-year (YoY) to RM53.2 million compared to RM19.3 million in 1H FY21.
Its net profit for 1H FY22 climbed 38.7 per cent to RM4.3 million versus RM3.1 million in 1H FY21 on the back of a larger number of projects undertaken from engineering, procurement, construction and commissioning (EPCC) services and broad economic recovery from the Covid-19 pandemic.