Solar projects to charge Samaiden’s earnings

PETALING JAYA: Clean-energy services and solutions provider Samaiden Group Bhd is well poised to post earnings improvement for its financial year ending June 30, 2026 (FY26), analysts say.

The improvements will be driven by progressive conversion of its RM711mil order book, accelerated recognition from the two Corporate Green Power Programme (CGPP) projects, and the commencement of work on the fifth phase of the government’s large-scale solar (LSS5) initiative.

In a note to clients, Apex Research said within the company’s engineering, procurement construction and commissioning (EPCC) segment, near-term support will come from accelerated recognition of the two CGPP projects worth RM91.2mil, with LSS5 scheduled to progress from the second quarter of FY26 (2Q26) onwards, driving earnings growth.

The EPCC mix is expected to tilt towards higher-margin rooftop solar projects, driven by a front-loaded self-consumption programme through the end of this year.

Furthermore, the commencement of CGPP projects by the end of this year is expected to support earnings through electricity sales, lifting recurring income to about 3% to 4% in FY26 (from over 1%) and keeping the group on track to achieve its target of 10% recurring contribution by 2027.

According to Apex Research, the near-term EPCC awards are likely to be driven by LSS5 and LSS5+, where Samaiden is aiming for a 20% market share in each scheme.

To date, the group has already secured 11.6% market share in LSS5 and 5% in LSS5+.

“We believe this internal target remains attainable, underpinned by Samaiden’s proven track record in utility-scale solar and its strong balance sheet with a net cash position.” the research house added.

To reflect the accelerated revenue recognition from CGPP and LSS projects, Apex Research has revised Samaiden’s earnings forecasts upwards by 16.7% and 2.9% for FY26 and FY27, respectively.

It has also raised the stock’s target price to RM1.45, while maintaining a “buy” call.