RENEWABLE energy will gradually feature as G Capital Bhd’s (GCAP) main source of future income, thus reducing the company’s reliance on its core transportation segment.
Such confidence is gaining momentum as GCAP and its subsidiaries via its 70%-owned subsidiary Solarcity Malaysia Sdn Bhd had on Sept 5 completed the installation and commence operation of the 1.1 megawatt (MW) solar photovoltaic electric power generation system for De-Luxe Food Services Sdn Bhd in Pulau Indah (Selangor) .
The deal which is in accordance with their earlier inked 25-year power purchase agreement (PPA) marks GCAP’s maiden operating Solar PV System as well as an important milestone for the group since it became a solar energy solution provider via a 70% stake acquisition of Solarcity in February.
Deluxe Food is a manufacturer and distributor of premium frozen bakery products under the brand name Hearty Bake.
The company is a wholly owned subsidiary of Envictus International Holdings Ltd which is listed on the Singapore Exchange Securities Trading Ltd. The Envictus group of companies are principally involved in food services, food processing as well as trading and frozen food.
“We have accomplished a remarkable result by commencing the operation of our solar PV (photovoltaic) system ahead of its targeted schedule of March 2022,” commented G Capital’s executive director Tan Sri Dr Ali Hamsa.
“This is made possible by efforts of both teams, especially the corporation rendered by Deluxe Food’s management in addition of being blessed with good weather during installation.
“Moreover, Deluxe Food being part of essential services were less affected by restrictions imposed under the movement control order (MCO).”
Moving forward, GCAP expects revenue from its solar power division to add new flavour to the group’s main income stream which is mostly derived from its transportation.
“We are pleased with the current growth trajectory of our solar power division,” noted Ali, “We are doing our best to power up the other 15.5MW Solar PV Systems we bagged by adhering to the latest standard operating policies announced by the Government.”
To recap, Solarcity has secured six 25-year PPAs of 16.6MW and is in the midst of finalising at least 14MW PPA.
In its 2Q FY2021 financial performance, GCAP reported a net profit attributable to shareholders of RM800,000, of which its transportation division remained the sole revenue and earnings contributor.
“Similar with previous quarters, the transportation division has remained our sole revenue and earnings contributor. We shall see this changes with the commencement of our solar plant operation,” added Ali.
At the close of yesterday’s trading, GCAP was up 0.5 sen or 0.73% to 69 sen with 440,200 shares traded, thus valuing the company at RM221 mil – Sept 7, 2021
