Northern Solar Holdings Bhd, a renewable energy solutions provider, is positioned for a stronger earnings phase as it prepares to transfer to the Main Market of Bursa Malaysia in the coming months. According to a recent analysis by Apex Securities, the company’s earnings trajectory is set to improve significantly, driven primarily by developments in large-scale solar (LSS) projects and ongoing engineering, procurement, construction, and commissioning (EPCC) activities.
Apex Securities values Northern Solar at RM1.44 per share, based on a 15 times price-to-earnings (PE) ratio. This valuation reflects a 34% discount to the average 22.8 times PE observed for comparable companies such as Solarvest Holdings Bhd, Samaiden Group Bhd, and Pekat Group Bhd. The discount is attributed to Northern Solar’s smaller scale and shorter operating history.
The broker forecasts the company’s revenue to more than double from RM113 million in the financial year ending March 31, 2026 (FY26), to RM264.2 million in FY27. This revenue growth is expected to drive a 74% increase in core net profit to RM26.6 million in FY27, followed by a further 42% rise to RM37.9 million in FY28. Earnings per share are projected to climb from 3.9 sen in FY26 to 9.6 sen by FY28.
Central to this outlook is Northern Solar’s RM119.39 million contract under the LSS5 program, which marks its entry into larger utility-scale solar and grid-interconnection projects. Approximately 60% of the contract’s revenue is expected to be recognized in FY27, with the remainder in FY28. This contract includes RM71.86 million allocated to collector lines and interconnection work. Apex Securities notes that beyond immediate revenue gains, the project enhances Northern Solar’s capabilities in medium- and high-voltage infrastructure, potentially broadening its market beyond rooftop and commercial and industrial (C&I) solar projects.
Additionally, Northern Solar is exploring opportunities under the Corporate Renewable Energy Supply Scheme (Cress), which could contribute substantial growth. The company is reportedly finalizing plans for a 170-megawatt solar-plus-storage Cress project valued at over RM800 million, with a two-and-a-half-year construction timeline and a single data-center offtaker. Northern Solar would participate as an asset owner rather than contractor. This project, if secured, would represent a significant increase in the company’s asset base and support its transition toward stable income from long-term power purchase agreements. However, Apex Securities has not yet factored the Cress project into its earnings forecasts or valuation, viewing it instead as a potential upside catalyst.
As it moves into FY27, Northern Solar holds an unbilled order book of RM189.3 million and active tenders totaling RM2.23 billion, an increase from RM110 million and RM1.96 billion, respectively, a year earlier. EPCC contract replenishment remains robust, averaging about RM16 million per month, supported by roughly RM10 million from C&I projects and RM5 million to RM6 million from residential ventures under the Accelerated Transition Action Programme. The firm’s pipeline is also expected to benefit from further rounds of large-scale solar programs (LSS5, LSS5+, and LSS6), expanding utility-scale opportunities alongside growing demand for battery energy storage systems, which raise contract values for larger solar installations.