Solarvest and Samaiden Hit Record Highs on Cress Package
Bursa Malaysia renewable energy stocks surged Monday after the government introduced the Cress Acceleration Package, driving sector index gains.
Key points
- Solarvest and Samaiden hit record highs on Bursa Malaysia following the Cress Acceleration Package announcement.
- HLIB raised Solarvest and Samaiden earnings forecasts for FY27-FY29 by up to 48% due to faster deal closures.
- The Cress package mandates commercial operation by end-2028 and sets a 14 sen/kWh system access charge.
Renewable energy equities on Bursa Malaysia climbed sharply on Monday, bucking broader market weakness following the government's introduction of the Corporate Renewable Energy Supply Scheme (Cress) Acceleration Package. The policy move triggered significant buying interest in key solar developers, with Solarvest Holdings Bhd and Samaiden Group Bhd both reaching fresh all-time highs during trading sessions.
Solarvest shares peaked at RM3.80, a 14.11% gain, before settling at RM3.69 by 11:40 am, reflecting a market capitalization of approximately RM3.6 billion. Samaiden Group also hit a record high of RM2.30, representing a 17.95% jump, before trading at RM2.25 with a valuation of roughly RM1.25 billion. The Bursa Malaysia Energy Index rose 0.99% to 828.78, outperforming the KLCI which fell 0.07%.
Cress package details drive sector momentum
The Cress Acceleration Package sets the System Access Charge at 14 sen per kilowatt-hour for firm green electricity, requiring projects to achieve commercial operation by December 31, 2028. It also mandates a minimum ten-year contract period between renewable energy developers and green consumers. These terms aim to resolve previous bottlenecks where developers and consumers struggled to agree on commercially viable terms, which had slowed project progression.
Other listed firms benefited from the sentiment shift. Pekat Group Bhd rose 5.69% to RM2.23, while Northern Solar Holdings Bhd climbed 9.42% to 75.5 sen, its highest level in over 11 months. The sector-wide rally indicates strong investor conviction in the accelerated timeline for corporate renewable energy adoption in Malaysia.
Analysts project near-term deal closures
Hong Leong Investment Bank Bhd (HLIB) analyst David Ng noted that the new deadlines create a tight window for developers to secure contracts and reach financial close. Ng expects Solarvest and Samaiden to secure their first Cress projects within the next three months. He anticipates stronger news flow and deal announcements in the fourth quarter of 2026 and first quarter of 2027, driven by accelerated negotiations with data center offtakers.
In a note reported by KLSE Screener, HLIB raised Solarvest’s earnings forecasts for FY27, FY28, and FY29 by 35.1%, 33.2%, and 33% respectively, citing higher order book and margin assumptions. The firm maintained its 'Buy' call and increased the target price to RM4.85 from RM3.59. For Samaiden, HLIB lifted FY27 and FY28 earnings estimates by 42% and 48% respectively, reinstating its 'Buy' rating with a target price of RM3.13.
Samaiden holds large Cress tender book
HLIB highlighted that Samaiden holds an RM3.5 billion tender book, approximately 70% of which comprises Cress projects. This provides stronger visibility for order book replenishment over the next two years. The firm maintained its 'Overweight' rating on the renewable energy sector, citing the continued expansion of Malaysia’s data center industry and the expected acceleration of project development under the new package.
