Solarvest Holdings Berhad (Solarvest or the Group), a leading regional clean energy expert, announced its financial results for the fourth quarter (4QFY24) and the fiscal year ending 31 March 2024 (FY24). The Group achieved record-breaking financial performance for the second consecutive year, showcasing significant growth in revenue and profit.
For FY24, Solarvest reported a 34.8% year-on-year (YoY) increase in revenue, reaching RM492.6 million, up from RM365.5 million in the previous fiscal year (FY23). The Group’s net profit surged by 64.1% YoY to RM32.3 million from RM19.7 million in FY23, with a net profit margin rising to 6.5% compared to 5.4% last year.
This impressive performance was driven by higher revenue from Large Scale Solar 4 (LSS4) projects, strong results in the commercial and industrial (C&I) segments, and profitable asset development projects. Solarvest’s strategic diversification beyond engineering, procurement, construction, and commissioning (EPCC) contracting played a crucial role in achieving these milestones.
In 4QFY24, Solarvest’s revenue moderated to RM96.9 million from RM113.22 million in 4QFY23, primarily due to the completion of most LSS4 projects. Despite this, the Group’s net profit climbed 48.1% YoY to RM7.7 million, compared to RM5.2 million last year, driven by lucrative asset development projects under Powervest and electricity sales from its three self-owned LSS4 plants.
The EPCC segment remained the primary revenue contributor, accounting for RM449.7 million or 91.3% of the Group’s revenue, an increase from RM355.7 million or 97.3% in FY23. This adjustment aligns with Solarvest’s five-year plan to achieve 30% recurring income.
Electricity sales saw a six-fold YoY increase to RM12.0 million from RM1.9 million in FY23, following the commissioning of all three self-owned LSS4 assets. FY24 included initial contributions from these assets, with full-year impact expected in FY25.
Other segments, including solar project development, environmental commodities trading, and other green energy solutions, grew over seven times, reaching RM24.0 million in FY24 from RM3.2 million the previous year. The operations and maintenance (O&M) segment contributed RM6.9 million, up from RM4.7 million last year.
Executive Director and Group CEO of Solarvest, Mr. Davis Chong Chun Shiong, highlighted FY24 as a landmark year marked by the successful completion of all eleven LSS4 projects, totaling 208.0 megawatts peak (MWp). He expressed optimism about the EPCC segment’s prospects, with upcoming projects from the Corporate Green Power Programme (CGPP) expected to add over RM1.0 billion in potential revenue to the order book by 2QFY25 to 3QFY25.
Solarvest plans to pursue ownership and development opportunities alongside EPCC contracts in the upcoming LSS5 programme, which has a total quota of 2.0GW. The Group also looks forward to additional project opportunities under NEM 3.0 and NEDA, which present significant expansion prospects.
In FY25, Solarvest anticipates full-year contributions from its three self-owned LSS4 assets, projected at RM23 million annually. The Powervest corporate power purchase agreement, with a cumulative capacity of 109.0 MWp, is expected to generate annual revenue of RM38.0 million upon full completion within the next 12-18 months.
Looking ahead, Solarvest remains confident about its growth prospects as the government initiates the National Energy Transition Roadmap (NETR) flagship projects. The establishment of Energy Exchange Malaysia (Enegem) is expected to boost cross-border electricity trading, positioning Malaysia as a regional energy hub.
In April 2024, Solarvest announced a Proposed Private Placement with expected gross proceeds of up to RM56.7 million, primarily for capital expenditure on CGPP and C&I rooftop solar projects. This initiative is expected to enhance Solarvest’s asset investment capabilities and drive business expansion.
Solarvest is also planning an internal restructuring to boost its renewable energy asset investment capabilities, facilitated by an upcoming fundraising initiative. This will support the Group’s ambitious 6.1 gigawatt-peak (GWp) tender book, strategically distributed across Malaysia and overseas markets.
As of 31 March 2024, Solarvest’s unbilled order book stood at RM242.0 million, positioning the Group for continued growth and expansion in both domestic and international markets.
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