MIDF Amanah Investment Bank Bhd (MIDF Research) has reiterated its BUY call on Samaiden Group Bhd with an unchanged target price of RM1.69. The research house cited strong order book prospects and significant growth potential in the renewable energy (RE) sector. MIDF Research noted the group's acceptance of a notification letter from the Energy Commission to develop a 99.99MW solar photovoltaic (PV) plant in Pasir Mas, Kelantan, as a pivotal milestone.

The project, part of the Large Scale Solar 5 (LSS5) programme, is expected to achieve commercial operation by Oct 11, 2027. Upon completion, Samaiden will enter into a 21-year power purchase agreement with Tenaga Nasional Bhd to supply electricity to the national grid, generating recurring income. The research house believed Samaiden would undertake the plant's entire engineering, procurement, construction and commissioning (EPCC) works, showcasing its integrated capabilities in the RE value chain.

Samaiden's order book currently stands at a record high of RM521.2 million, bolstered by RM91.2 million in EPCC contracts secured under the Corporate Green Power Programme. The group also targets an additional 70MW of similar EPCC jobs, potentially adding RM200 million to RM280 million to its order book. Future replenishment prospects remain robust, supported by the 2GW capacity under LSS5 and the extension of the Net Energy Metering 3.0 programme until June 2025.

Further growth is anticipated from Samaiden's expansion into Indonesia's RE market through its 70:30 joint venture with PT MCS Bina Energi. The JV, aimed at both EPCC and asset investments, has identified several projects, some of which are already under discussion. MIDF Research saw this move as a strategic step in diversifying and strengthening Samaiden's regional presence.

MIDF Research maintains its earnings estimates for Samaiden, valuing the group's EPCC business at 26 times the price-to-earnings ratio, slightly discounted compared to industry leader Solarvest. The analysts highlighted the company's strong net cash position of RM119.8 million, which underpins its near-term growth and positions it as a key beneficiary of Malaysia's National Energy Transition Roadmap.

Samaiden's consistent execution, coupled with expanding opportunities in the renewable energy sector, aligns with the government's push for a sustainable energy mix, the research house noted. With an expected total return of 31.2%, including a projected dividend yield of 1.2%, MIDF Research viewed Samaiden as well-positioned to capitalise on the growing demand for renewable energy solutions.