Analysts from both MIDF Amanah Investment Bank (MIDF Research) and RHB Investment Bank Bhd (RHB Research) have maintained a positive outlook on Samaiden Group Bhd, reaffirming their BUY recommendations. MIDF Research has revised its target price (TP) for the company to RM1.69 from RM1.57, while RHB Research maintained its TP at RM1.33. The analysts are confident in Samaiden's strong order book, expected to support its earnings growth in the upcoming quarters.
MIDF Research highlights that Samaiden's first quarter financial year 2025 (1QFY25) core earnings grew by 53.2% year-on-year (YoY) to RM4.5 million, driven by stronger margins from its ongoing engineering, procurement, construction and commissioning projects. Although quarterly earnings showed a 42.7% quarter-on-quarter decline due to the completion of several Large-Scale Solar 4 (LSS4) projects, analysts remain optimistic due to Samaiden's robust order book, which reached a record high of RM521.2 million.
The company's outlook is further bolstered by the expected contributions from new Corporate Green Power Programme (CGPP) contracts, LSS5 and the Net Energy Metering programme.
Similarly, RHB Research notes that Samaiden's 1QFY25 results met expectations, with core earnings at RM3.3 million, a 42.5% decline, compared to the previous quarter but an 18.7% YoY increase. The house believes the weaker quarter is typical, with stronger results anticipated in the second half of FY25 as the CGPP contracts progress. RHB Research noted that Samaiden has a 66% increase in its order book, now at RM521.2 million, which includes 45% from CGPP, 35% from bioenergy, and 16% from commercial and industrial solar projects.
Both analysts expect the upcoming LSS5 quota awards, expected this month, to offer further growth opportunities for Samaiden. The company is also well-positioned to benefit from government initiatives such as the National Energy Transition Roadmap, the Integrated Clean Energy programme and the Corporate Renewable Energy Supply Scheme.
Both research houses revealed that risks such as the potential discontinuation of solar incentives, increased competition and higher-than-expected project costs could impact Samaiden's future performance. However, with a strong financial position and significant order book prospects, Samaiden is poised for continued growth in the renewable energy sector.
