Solarvest Holdings Berhad (Solarvest or the Group), a leading clean energy expert, has reported its financial results for the third quarter (3QFY24) and nine months ended December 31, 2023 (9MFY24).
During the 9MFY24 period, Solarvest achieved remarkable revenue growth, surging by 56.8% year-on-year to RM395.7 million compared to RM252.3 million in the corresponding period of the previous year (9MFY23). This performance exceeded the Group’s FY23 revenue of RM365.5 million. Similarly, net profit for 9MFY24 saw a significant increase of 69.2% year-on-year, rising from RM14.5 million in 9MFY23 to RM24.5 million, surpassing FY23 net profit of RM19.7 million.
In 3QFY24, Solarvest recorded a 10.7% year-on-year revenue growth to RM112.4 million, compared to RM101.5 million in the previous year’s corresponding quarter (3QFY23).
Additionally, the Group’s net profit for 3QFY24 soared by 104.7% to RM10.7 million from RM5.2 million in 3QFY23, marking the third consecutive quarter of record-breaking quarterly net profit. This increase in net profit and margins can be attributed to favorable trends in solar panel prices and increased Commercial and Industrial (C&I) projects and asset development, which typically carry higher profit margins.
The Engineering, Procurement, Construction, and Commissioning (EPCC) segment remains the primary revenue contributor, accounting for RM104.1 million or 92.6% of the Group’s revenue. The quarter witnessed a decrease in large-scale solar (LSS) EPCC revenue to RM43.5 million due to the completion of seven out of eight LSS4 EPCC projects by 3QFY24. However, the Group anticipates a boost in its LSS EPCC order book with the commencement of LSS5 bidding.
Furthermore, all three of Solarvest-owned LSS4 assets, totaling 67.3 megawatts peak (MWp), are fully operational as of 3QFY24, resulting in a significant increase in electricity sales segment revenue to RM3.4 million from RM0.4 million last year. This is expected to enhance Solarvest’s recurring earnings from electricity sales.
Operations and maintenance (O&M) of solar energy systems and other activities contributed RM4.9 million or 4.3% of revenue.
Mr. Davis Chong Chun Shiong, Executive Director and Group Chief Executive Officer of Solarvest, expressed excitement over the record-breaking results, affirming confidence in sustaining positive momentum into the upcoming quarters. The Group’s EPCC unbilled order book remains healthy at RM242.0 million, driven by C&I and residential rooftop segments, with the addition of CGPP EPCC project opportunities expected in 4QFY24.
Moreover, the Group anticipates long-term, stable recurring earnings of RM9 million annually from the full operation of its three LSS4 assets through electricity sales over the next 25 years. Solarvest has also secured multiple corporate power purchase agreements (PPAs) through its financing program, Powervest, with a cumulative capacity of approximately 116 MWp, projected to generate around RM41.0 million in additional annual recurring revenue upon project completion.
Looking ahead, Solarvest is poised for growth opportunities, including cross-border trading with Singapore, development of a hybrid hydro-floating solar PV system under the National Energy Transition Roadmap (NETR), and a robust tenderbook of projects totaling 4.6 GWp, further solidifying its leadership position in the renewable energy industry.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
