corporate

Solarvest posts higher net profit amid lower revenue in Q2

KUALA LUMPUR: Solarvest Holdings Bhd's net profit rose to RM9.2 million in the second quarter (Q2) ended Sept 30, 2024 from RM7.18 million in the previous corresponding period backed by improved margins within the commercial and industrial (C&I) segment.

However, the company's revenue fell to RM103.91 million from RM139.90 million in the previous corresponding quarter.

This was due to the completion of all large solar scale 4 (LSS4) projects, which were still actively ongoing in the corresponding quarter of the previous year.

For the six-months period ended Sept 30, 2024 (6M24), Solarvest's net profit grew to RM17.04 million from RM13.88 million in the previous corresponding period, while revenue dropped to RM176.56 million from RM283.29 million a year earlier.

In 6M24, Solarvest reported its highest-ever first-half net profit, a 22.7 per cent increase over the previous year.

The company also observed an unprecedented gross profit of RM55.2 million, its highest to date, largely attributed to the reduction in solar panel costs.

Solarvest expects the momentum to continue over the coming years, strengthening the company's margins for long-term growth.

Executive director and group chief executive officer Davis Chong Chun Shiong said to date, the company recorded its highest-ever unbilled order book of engineering, procurement, construction and commissioning projects amounting to RM961 million.

With this, Chong said a strongest-ever financial performance is expected in the second half of FY2025, supported by the commencement of the Corporate Green Power Programme and improved profit growth.

"Looking ahead, we are eager to receive the upcoming LSS5 project award with a minimum of 2GWac in solar projects opportunities.

"The upcoming LSS5 announcement is going to mark the largest utility programme in the country's history," he added.

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