Solarvest is considerably well positioned to weather the above mentioned short term challenges in due to their cemented position in the industry. Being the only listed Solar EPCC , they are better funded and have an edge over the competition with - economies of scale which equates to better bargaining power, and the ability to offer more competitive terms. As the scale of solar projects continues to increase, the average startup wouldnt have the means to finance such projects.
While in the short term there may be price war, there will always be consolidation and our view is that Solarvest is well primed to weather such uncertainties.
While many would want you to think that prices of solar panels are going up, it should also be considered that the Malaysian Solar market being just a few hundred MW a year industry would benefit from a huge vacuum in demand with deployments in China being at a standstill . ( China was a 30GW = 30,000MW market in 2019 )
While the smaller and newly incorporated EPC's would have a very tough time getting prioritized, Solarvest is in a good negotiating position to further lower down their costs, taking advantage of the current situation.
The contrarian view from my team of analysts is that with the 1400MW slated to be launched through the stimulus package, Solarvest is entering it's next phase of boom and growth!
Stock: [SLVEST]: SOLARVEST HOLDINGS BERHAD
2020-03-07 12:51 | Report Abuse
Solarvest is considerably well positioned to weather the above mentioned short term challenges in due to their cemented position in the industry. Being the only listed Solar EPCC , they are better funded and have an edge over the competition with - economies of scale which equates to better bargaining power, and the ability to offer more competitive terms. As the scale of solar projects continues to increase, the average startup wouldnt have the means to finance such projects.
While in the short term there may be price war, there will always be consolidation and our view is that Solarvest is well primed to weather such uncertainties.
While many would want you to think that prices of solar panels are going up, it should also be considered that the Malaysian Solar market being just a few hundred MW a year industry would benefit from a huge vacuum in demand with deployments in China being at a standstill . ( China was a 30GW = 30,000MW market in 2019 )
While the smaller and newly incorporated EPC's would have a very tough time getting prioritized, Solarvest is in a good negotiating position to further lower down their costs, taking advantage of the current situation.
The contrarian view from my team of analysts is that with the 1400MW slated to be launched through the stimulus package, Solarvest is entering it's next phase of boom and growth!