KUALA LUMPUR: RHB Investment Bank Bhd (RHB Research) has cut Samaiden Group Berhad's earnings forecast for financial years 2025 and 2026 (FY25-26) by 19 and 10.7 per cent despite FY24 concluded on a positive note.
The research firm said it revised downwards the earnings forecast to exclude biomass engineering, procurement, construction, and commissioning companies (EPCC) earnings due to prolonged delays, as the project owner has not resolved financing terms.
RHB Research maintained a "buy" call on the stock while lowering the target price (TP) to RM1.33 from RM1.58.
The research firm is positive on the company's outlook, driven by opportunities in renewable energy (RE) initiatives.
"We introduce FY27 forecasts on the assumption of a 200 MW (megwatt) orderbook replenishment from utility-scale projects, supported by government initiatives to increase the RE mix," it added.
As of March 2024, Saimaiden's orderbook stood at RM313.5 million, which is 11.5 per cent below the previous quarter's RM354.3 million, as large-scale solar (LSS) orders were recognised.
"The orderbook breakdown is 40 per cent biomass, 30 per cent utility-scale solar, and 20 per cent commercial and industrial solar, while the rest comprise mini hydro and other projects," RHB Research said in a note.
The firm anticipates near-term orderbook replenishment from the Corporate Green Power Programme (CGPP).
It said that Samaiden is well-positioned to benefit from an influx of projects from the remaining 450 MWac Kulim Hi-Tech Park (KHTP) solar projects, from the National Energy Transition Roadmap (NETR), and LSS5.
In FY24, Samaiden's revenue jumped 33 per cent to RM227.2 million, driven by the 50MW LSS4 and 50MW KHTP contracts.
RHB Research said that new initiatives like the Cross-Border Electricity Supply and Corporate Renewable Energy Supply Scheme should provide Samaiden with ample opportunities, particularly in the EPCC space.