Samaiden enters FY27 on strong footing

PETALING JAYA: Samaiden Group Bhd enters the financial year of 2027 (FY27) with strong earnings momentum.

This comes after a record fourth-quarter 2026 (4Q26) core net profit of RM14.9mil, up by 85.7% quarter-on-quarter, taking full-year core earnings to RM36.2mil, up 67.4% year-on-year.

According to Hong Leong Investment Bank (HLIB) Research, performance was anchored by a gross margin expansion to 29.7%, driven by strategic panel procurement ahead of China’s tax rebate revision alongside supply-chain value engineering.

These elevated margins should persist for another two to three quarters before steadily normalising.

The research house said Samaiden’s revenue visibility is secured by a RM435.8mil unbilled order book with management eyeing a RM1bil target in FY27, citing that growth is underpinned by a RM3.5bil tender pipeline dominated by utility-scale Corporate Renewable Energy (RE) Supply Scheme of about 70% and 10% of Large Scale Solar (LSS) 5+ opportunities.

The upcoming LSS6 scheme serves as the primary medium-term catalyst.

“Samaiden has secured land in the southern region, providing management with confidence of achieving an approximate 20% market share.

“However, we retain our assumption of 15% market share for now.

“We expect the engineering, procurement, construction and commissioning (EPCC) margins to remain broadly unchanged in the high-single-digit range despite the larger battery energy storage systems (Bess) content,” HLIB Research said.

The research house retained a “buy” recommendation with a target price (TP) of RM2.35.

“Our sum-of-parts (SOP) TP is driven by a price-to-earnings multiple of 24 times on its EPCC business and discounted cash flow of recurring income assets.”

Meanwhile, TA Research expects Samaiden’s elevated gross margin profile to persist through most of FY27, backed by early module procurement and execution of LSS5 projects.

While EPCC margins are expected to normalise as focus shifts to LSS5+ and LSS6 developments toward 4Q27, overall profitability will be buffered by incoming power generation assets (Corporate Green Power Programme and LSS5) through FY29.

The research house noted Samaiden is aggressively targeting up to a 20% share of the 2.65-gigawatt LSS6 rollout across EPCC and asset developer roles, exceeding its historical 8% to 17% run-rate.

“In view of the LSS6 emphasis on projects in the southern region of Peninsular Malaysia, the group has secured potential land plots in the area for LSS6 projects.

“LSS6 tariff bids are expected to be higher compared to prior LSS cycles, given the integration of Bess, more expensive land cost, lower solar irradiation in the southern region and higher solar module costs now,” added TA Research.

The research house maintained a “buy” rating at an unchanged SOP-derived TP of RM2.38.

“We continue to like Samaiden as one of the key beneficiaries of an upcycle in RE plant-up underpinned by a solid order book, strong balance sheet and sizeable pipeline of RE assets to boost recurring income.”

MBSB Research also maintained a “buy” rating on Samaiden, raising its SOP-derived TP to RM2.45 from RM1.88 after boosting the FY27 and FY28 earnings forecast by 22.1% and 16.2%, respectively.

It noted that stockpiled lower-priced solar modules will keep margins elevated for two to three quarters before normalising as panel quotes rise 5% to 10%.

“Management believes revenue from owned assets could contribute around 10% of group revenue, providing a more stable earnings stream alongside the core EPCC business.”