Solarvest Holdings Berhad, a prominent player in the clean energy sector, has made a significant financial stride, exceeding earnings expectations in the first quarter of fiscal year 2024 (Q1FY24). The company has officially announced its financial results for the first quarter of fiscal year 2024, ending on June 30, 2023, marked as Q1FY24. Solarvest reported remarkable revenue and profit growth, primarily attributed to robust market conditions and strategic initiatives.
During the first quarter that ended June 30, 2023, Solarvest’s revenue soared to RM143.4 million, marking a 172.3% increase compared to RM52.7 million in the same period of the previous year (1QFY23). This surge in revenue was mirrored in the profit figures, with net profit reaching RM6.7 million, a remarkable 56.5% YoY improvement from RM4.3 million in the prior year. These results have set a new high-water mark for Solarvest, representing the strongest quarterly performance in the group’s history.
The growth in revenue was driven largely by the engineering, procurement, construction, and commissioning (EPCC) of solar energy solutions, accounting for 98.1% of the total revenue in Q1FY24. This segment reported revenue of RM140.7 million, a remarkable 176.8% YoY increase. This was primarily due to the increased recognition from the higher construction progress of large-scale solar (LSS4) projects. The remaining 1.9% or RM2.7 million came from operations and maintenance (O&M) of solar energy systems, sales of electricity generated through solar energy, and other activities.
Mr. Davis Chong Chun Shiong, the Executive Director and Group Chief Executive Officer of Solarvest, expressed his delight at the record-breaking performance commenting, “We are delighted to deliver another set of record-breaking performance, setting a strong start for the new financial year. Fueled by the continued support from our partners and valued customers, we remain committed to advancing across the value chain as a clean energy developer and further grow our asset ownership portfolio.”
He emphasized the commitment to advancing across the clean energy value chain by adding “We are pleased that all three of our LSS4 assets totaling 67.3 MWp are on track for commissioning by FY24, positioning the Group to generate annual electricity sales of RM9.0 million in net profit for 25 years upon commissioning. Additionally, recent developments on the Corporate Green Power Programme (CGPP) also bode well for us. Our Group have project opportunities amounting to 250 MWp through CGPP, of which approximately 50 MWp is under full ownership by Solarvest. With scheduled commissioning in 2025 and 21-year power purchase agreements (PPA), our CGPP solar plants will further contribute to our recurring income in the long run. Notably, our current unbilled order book of RM457.0 million is also expected to be further bolstered by the EPCC projects under the CGPP framework.”
“Furthermore, under our financing programme for commercial and industrial users known as Powervest, we have clinched multiple corporate PPAs with a cumulative capacity of 83.6MWp. This is projected to add annual recurring revenue of RM37.0 million upon full completion within the next 12 to 18 months,” he future added, “Looking ahead, we maintain a positive outlook as we advance our market expansion strategy in tapping into new sources of overseas income. In addition to the secured projects totaling 23.5 MWp, our Group’s tender book currently stands at 2.2 gigawatt-peak (GWp), spanning a geographical footprint that encompasses Taiwan, the Philippines, Vietnam, Indonesia, Thailand, and Singapore. The contributions from our overseas tender book are set to take effect in FY25, further solidifying our market positioning in both domestic and international markets.”
Furthermore, Solarvest’s low-carbon mobility arm, Powerbee, is making strides with a goal to deploy 10,000 EV charger installations by 2030. The company has also signed a Memorandum of Understanding (MoU) with Singapore partners to advance energy storage system (ESS) development in solar energy systems. In parallel, Solarvest is venturing into new sustainable solutions, including energy efficiency (EE), renewable energy certificates (REC), green hydrogen, and green data centers, demonstrating its commitment to remain at the forefront of clean energy practices.
The recent unveiling of the National Energy Transition Roadmap (NETR) by the Malaysian Government and the lift of the RE export ban present exciting growth opportunities within the renewable energy (RE) sector for Solarvest, particularly in neighboring countries like Singapore. On a quarter-on-quarter (QoQ) basis, Solarvest’s revenue, and net profit grew by 26.6% and 28.4% in Q1FY24, primarily driven by higher revenue contributions from LSS4 projects. The company’s impressive financial performance underscores its position as a leading player in the clean energy industry, poised for further growth in the coming fiscal year.