KUALA LUMPUR: Samaiden Group Bhd is poised to benefit from long-term renewable energy (RE) capacity roll-outs to achieve an RE target mix of 70 per cent in Malaysia, said Apex Securities Bhd.
Apex Securities, which initiated coverage on the stock with a "Buy" call and RM1.66 target price, favours Samaiden for several compelling reasons.
This includes its strong track record, having successfully delivered 200 renewable energy projects in a timely manner.
"They specialise in ground-mounted solar photovoltaic systems and have captured an average market share of 15.4 per cent in EPCC jobs from large scale solar projects," said the firm.
Samaiden's expertise extends to bioenergy solutions, particularly in biomass, enhancing its diversification and market position.
"Financially, Samaiden demonstrates robust fundamentals, maintaining a net cash position of RM96.9 million and a low gearing ratio of 0.04 times as of the nine months ended March 31, 2024 (9MFY2024).
"They also stand to benefit from the stabilisation of solar module prices and are well-positioned to capitalise on the long-term growth potential of the renewable energy sector, supported by the National Energy Transition Roadmap."
Apex Securities said key risks for the company include fluctuation in solar module costs and heavy reliance on government initiatives.