KEY INVESTMENT HIGHLIGHTS

• RM39.2m EPCC job for a 10MW CGPP solar plant in Bahau, Negri Sembilan
• Another related party transaction by virtue of GMD's shareholdings
• Outstanding order book has risen to RM404.7m
• Maintain BUY with an unchanged TP of RM1.57

Second CGPP contract. Samaiden has secured its second Corporate Green Power Programme (CGPP). Its wholly owned subsidiary Samaiden Sdn Bhd was awarded a RM39.2m contract from Bahau Power Sdn Bhd (BP) to develop a 10MWac large scale solar photovoltaic (LSSPV) power plant in Bahau, Negri Sembilan.

Project details. The job scope includes the design, supply, delivery, installation, testing and commissioning for the LSSPV power plant. This is expected to be completed within 12 months by 15th September 2025, in order to achieve the scheduled commercial operation date (COD). Similarly, we expect between mid to high single digit pretax margin for the project.

Related party transaction. Like its previously secured CGPP project from Legasi Green Power Sdn Bhd, this contract from BP is also a related party transaction. The shareholders of BP are Angelaxy Power Sdn Bhd (51%) and Uzma Enviroenergy Sdn Bhd (49%). Angelaxy Power is wholly owned by Datuk Ir Chow Pui Hee, who is the managing director and substantial shareholder of Samaiden.

Strengthening order book. With the new win, Samaiden's outstanding order book has risen to RM404.7m. We understand that Samaiden is eyeing at least 70MW more of EPCC jobs for CGPP, which translates into a potential RM200m-280m incremental orderbook.

Earnings estimates. We are maintaining our earnings estimates unchanged.

Recommendation. We are positive on Samaiden's prospects, with more CGPP jobs expected. We maintain our SOP-derived TP of RM1.57. We continue to value the group's EPCC business at 26x PER, at a slight discount to industry leader Solarvest. We maintain our BUY call on Samaiden being one of the key beneficiaries of EPCC prospects under the CGPP and the long-term RE growth potential from the National Energy Transition Roadmap. Balance sheet remains strong with a net cash position of RM122.3m, underpinning near-term growth prospects.

Source: MIDF Research - 3 Oct 2024