KUALA LUMPUR: RHB Investment Bank Bhd (RHB Research) reiterates its positive stance on Samaiden Group Bhd's outlook, after it secured its first contract under the Corporate Green Power Programme (CGPP), reflecting its position in the solar space.
Samaiden's contract, valued at RM52 million, is estimated to increase its orderbook to RM356.5 million, up 16 per cent from RM313.5 million in June.
RHB Research forecast a gross profit margin of between 10 and 15 per cent for this contract, in line with typical utility-scale engineering, procurement, construction, and commissioning (EPCC) projects.
"We reiterate our positive stance on Samaiden's outlook. Given its proven track record, the group is likely to continue seeing robust contract wins as more renewable energy (RE) initiatives are introduced," it said in a note.
Samaiden previously indicated its intention to secure at least 100 megawatts (MW) of EPCC jobs under the CGPP initiative, in addition to its 43.3 MW of gross assets under the programme.
The latest contract is for a 14 MW alternating current large-scale solar (LSS) plant located in Sungai Petani, Kedah.
RHB Research maintained its earnings estimates for Samaiden as this contract is within its orderbook replenishment assumptions.
It maintained a "Buy" call on the stock with a target price of RM1.33