Published on 27 Nov 2019. | Source: thestar.com.my
KUALA LUMPUR: Solarvest Holdings Bhd aims to strengthen its footprint domestically, as it foresees vast opportunities in the nation’s renewable energy mix target of 20% by 2025.
The solar photovoltaic system specialist wants to be at the forefront of the increasingly competitive industry in Malaysia, which is starting to see more entrants.
Managing director Lim Chin Siu said the group’s immediate focus was to increase its market share in the domestic market by expanding its footprint in the southern region.
“We want to capture business opportunities in Negri Sembilan, Melaka and Johor.
“As for our long-term growth, we are speaking to a few potential business partners in Vietnam and Taiwan to explore business opportunities there.
“The outlook is getting brighter for us and we are prepared to seize the sunny prospects ahead, ” he told a press conference here after Solarvest’s listing ceremony on Bursa Malaysia yesterday.
Solarvest made its debut on the ACE Market yesterday at 60 sen, a 71.43% premium over its issue price of 35 sen, with 21.58 million shares being traded.
Lim added that among the benefits of entering Taiwan was its lower competition, as engineering, procurement, construction and commissioning (EPCC) providers from China are not allowed to venture into Taiwan.
Chief executive officer Davis Chong said there were no merger and acquisition plans at the moment and the group had very strong organic growth.
“We’re putting more investments into buying machines and strengthening our operations.
“We’re also seeing more contracts coming from the southern region, so that’s a good sign, ” Chong said.
Solarvest raised a total of RM34.6mil from the initial public offering (IPO), which will mainly be utilised for the group’s working capital and the remaining for the repayment of bank borrowings, capital expenditure and expansion plans.
The group is also looking at investments into downstream such as energy plants, but there has yet to be any concrete plans or projects.
On the prospects of the group’s revenue and earnings for the second half of its financial year ending March 30,2020 (2H20), Chong said Solarvest was looking at steady growth.
“We’re pretty happy with our first-half revenue, which already surpassed the figure we recorded for the whole of the previous financial year, ” he said.
Solarvest recorded a revenue of RM140mil for 1H20 ended Sept 30,2019 and a profit after tax (PAT) of RM7.8mil. Its financial year 2019 figures were a revenue of RM112.2mil and a PAT of RM11.1mil.
Currently, 96% of Solarvest’s revenue comes from EPCC services.
It also owns a 1MWp solar photovoltaic plant in Pokok Sena, Kedah based on the feed-in-tariff mechanism, which contributes around 1.4% to its total revenue.
Solarvest was 45%-owned by Main Market-listed CHIN HIN GROUP Bhd. Post-IPO, Chin Hin’s shareholding is approximately 33.6%.