Its wholly owned subsidiary Solarvest Energy Sdn Bhd (SESB) signed a memorandum of understanding (MoU) with industrial consultant IDA Holdings Pte Ltd and Acumon Capital Pte Ltd, a real estate developer and manager.
The deal will expedite clean energy initiatives within the commercial and industrial sector entailing investment oversight and acquisition of land for solar projects with integrated energy storage solutions (ESS).
“The development of ESS-integrated solar projects involves leveraging lithium battery and hydrogen hybrid technologies to optimise energy usage, efficiently manage peak demand, and ensure a stable power supply,” the group said in a statement.
Apart from Singapore and Brunei, the group is also present in the Philippines, Vietnam, Indonesia, Thailand, and Taiwan.
“This strategic expansion allows Solarvest to be well-positioned in tapping into new sources of overseas income,” it said, adding this enables the group to capitalise on the shift towards clean energy by venturing into innovative sustainable offerings.
Marking a pivotal milestone
The group has successfully acquired nine rooftop solar photovoltaic (PV) projects in Singapore and Brunei, totalling approximately 4 megawatt-peak (MWp) capacity.
Furthermore, it has an extensive project tender portfolio of 60MWp for rooftop solar PV initiatives in both countries that positions it to be at the forefront in promoting sustainable energy solutions.
Group CEO Davis Chong said the expansion into the Singapore and Brunei markets marks a significant milestone in enhancing its market footprint within the Asean region.
“With that, our total tender book for overseas projects currently stands at 720MWp, indicating a strong job pipeline for the group,” he said.
“In addition to offering engineering, procurement, construction and commissioning (EPCC) services, we are actively involved in project development, securing financing, and providing comprehensive operations and maintenance services,” he added.
Focus on renewable energy EPCC players
Just last week, Hong Leong Investment Bank (HLIB) research initiated coverage on the RE sector with an “overweight” rating, premised on its strong growth potential.
The research house said key catalysts include the Corporate Green Power Programme awards, next year’s national budget and future roadmap/implementation plans.
HLIB added the sector is also expected to grow and benefit from an apolitical “multi-year energy transition theme”.
“We believe the growth of ESG (environmental, social and governance) investing could drive a rerating of RE stocks with tepid supply in the Malaysian market,” it said in a note last week.
HLIB initiated coverage on two Main Market-listed solar EPCC players – Solarvest and Samaiden Group Bhd.
It gave Samaiden a ‘buy’ rating and target price (TP) of RM1.43 and a ‘hold’ rating and TP of RM1.20 for Solarvest.
Meanwhile, MIDF Research said Malaysia’s ambitious target of achieving a 70% renewable energy (RE) capacity mix by 2050 will open opportunities for energy sector players.
It said the government’s strong support for developing a “green economy” has created pockets of opportunities within the sector, particularly in the RE space.
It said renewable energy EPCC companies like Solarvest, Samaiden, Sunview Group Bhd, and Pekat Group Bhd are set to benefit from the country’s concerted push for a green economy.
Solarvest shares closed 2 sen or 1.54% lower at RM1.28 yesterday, valuing the company at RM854.47 million.