Samaiden eyes more RE contracts
Samaiden Group Bhd is in the midst of tendering for several large scale solar (LSS4) related engineering, procurement, construction and commissioning (EPCC) projects, and confident in securing a reasonable sum of these projects this year.
KUALA LUMPUR: Samaiden Group Bhd is in the midst of tendering for several large scale solar (LSS4) related engineering, procurement, construction and commissioning (EPCC) projects, and confident in securing a reasonable sum of these projects this year.
Group managing director Ir Chow Pui Hee said the company is bullish on the renewable energy (RE) sector's outlook as the government steps up efforts to increase the share of RE in the national power capacity mix.
"Following the LSS@MEnTARI scheme launched in 2021, we anticipate more job flows for solar EPCC players in the near term, which will elevate the orderbook and earnings visibility of the industry players.
"Aside from solar energy, we are also witnessing increasing demand for other sources of RE such as biomass and biogas.
"In this respect, we have diversified into providing EPCC services for two biomass RE power plants in Terengganu, as well as developing a 1.2 MW biogas plant located in Kelantan.
"With our diversified portfolio, we are poised to capitalise on the growth of RE," she told The New Straits Times.
Apart from that, Chow said the company also expect to expand RE and solar asset ownership business.
In December last year, the company signed its first solar power purchase agreement (PPA) with Perbadanan Sunway Nexis (PSN) to purchase electricity over a 20-year contractual period, providing Samaiden with recurring revenue.
"We are positioning ourselves to capture the increasing demand for solar PV systems.
"In December 2021, we secured a RM98.2 million contract to develop solar photovoltaic (PV) systems with a total capacity of 39MWp for international textile manufacturer Ramatex Group of Companies.
"The project has commenced and is expected to contribute to Samaiden in the first half of 2022," Chow said.
Samaiden current outstanding orderbook stands at RM377 million, which will provide solid earnings visibility for the next three years.
"The tender book amounts to more than RM600 million at the moment.
"We expect our tender book to increase further in the near term following increased tender invitations, especially from the LSS4 projects," Chow said.
Chow also noted that the rise in commodities prices globally, such as silicon, has increased the average selling price of solar panels.
"This, in turn, will increase our cost of sales due to higher purchasing prices.
"However, the impact is manageable as we had purchased our inventories early on when the price was low.
"For future contracts, we will pass on the cost increase to our customers, allowing us to maintain our margins," she said.
Chow said the company constantly works with its clients to plan inventories purchases prudently to mitigate these short-term uncertainties.
"In addition, we also have a large pool of suppliers in which we can tap on the best deal possible and purchase in bulk to maintain our cost competitiveness," she said.
When asked which states in the country have the potential for RE ventures that the company could explore in 2022, Chow said the northern part of Malaysia, such as Perlis, Kedah, Penang and Perak, has good potentials as these states have high irradiation.
"Hence, we aim to secure more renewable energy projects in this region," she said.
On January 6, Samaiden's wholly-owned subsidiary Samaiden Sdn Bhd (SSB) signed a strategic partnership agreement with SWG Technologies (M) Sdn Bhd, a wholly-owned subsidiary of Sinowaja (Malaysia) Sdn Bhd in providing solutions for the RE market in Sabah and Sarawak.
Under the agreement, Samaiden and Sinowaja will first focus on collaborative projects in relation to solar PV and smart or microgrid systems in East Malaysia.
According to a Bursa Malaysia filing, Samaiden's scope of work shall include supplying the necessary products and technical support to Sinowaja, while Sinowaja will support in design, research and development, and related works particularly in solar PV projects.
Samaiden eyes more RE contracts