Solarvest posts RM4m net profit for 3Q

KUALA LUMPUR (Feb 24): Solarvest Holdings Bhd posted a net profit of RM3.98 million for the third quarter ended Dec 31, 2019 on revenue of RM62.12 million.

There was no comparison numbers for the previous year's corresponding period as this is the second interim financial report on consolidation results announced by the group in compliance with listing requirements.

For the cumulative nine-month period, Solarvest posted a net profit of RM11.85 million on revenue of RM202.08 million.

Solarvest said the nine-month revenue and profit had surpassed the group’s full-year revenue and profit for the financial year ended March 31, 2019 (FY19), which stood at RM112.2 million and RM11.1 million respectively.

Solarvest is optimistic on the outlook for the solar photovoltaic industry in Malaysia as the government is committed to supporting the growth of the PV solar industry by setting a target for electricity generated from renewable energy at 20% of all power generated.

The government aims to grow the total solar PV installed capacity in Malaysia to 3,232 megawatts (MW) by 2023, from 438MW in 2018.

As at the reporting date, it said the unbilled order book stood at RM146.6 million, which will contribute progressively to the group’s revenue until FY20 and FY21.

“We are encouraged by the rising interest and solar investments from corporate clients in the commercial and industrial segment. In recent years, rooftop projects have been growing larger in size, from 1MWp previously to up to 30MWp today, as investors have better access to solar financing options coupled with the tax incentives from the government.

“Against this favourable backdrop, the next key growth area for us would be the commercial and industrial segment. Furthermore, we are on the lookout for more opportunities to expand our foothold in the solar industry, potentially, via peer-to-peer leasing programmes as well as investing in a solar farm project,” said Davis Chong Chun Shiong, group chief executive officer of Solarvest, in a separate statement.

Solarvest’s share price closed eight sen or 6.02% lower at RM1.25, giving the group a market capitalisation of RM488.28 million.