ACE Market-listed Northern Solar Holdings Bhd is poised to capitalise on Malaysia’s expanding renewable energy (RE) landscape driven by large scale solar (LSS) projects, national grid modernisation and increasing demand for clean energy solutions.
This is evident from the RE solutions provider’s revenue for the 3Q FY3/2025 ended Dec 31, 2024 period of RM24.05 mil which was driven primarily by its engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems.
The group’s net profit for the quarter came in at RM3.43 mil. For 9M FY2024 period, Northern Solar posted RM64.2 mil in total revenue while its net profit stood at RM10.86 mil.
A key highlight of the financial results is the gross margin strength which stood at 33.8% for its 3Q FY3/2025 and an impressive 37.6% for the nine-month financial period.
These figures reinforce Northern Solar’s operational excellence, pricing discipline and cost-efficiency measures, hence positioning the group for sustainable long-term growth.
“Our ability to maintain a strong gross margin in a competitive industry speaks volumes about our financial discipline, strategic planning and the strength of our business model,” commented Northern Solar’s managing director Lew Shoong Kai.
“This performance highlights our commitment to delivering sustainable profitability and long-term value for our shareholders.”
As it is, Malaysia is experiencing a significant expansion in its solar energy sector with the LSS5, LSS5+, and LSS6 programmes expected to unlock RM15-RM18 bil in contracts over the next 24 months.
Opportunities abound
Along with Tenaga Nasional Bhd’s (TNB) RM42.8 bil investment in national grid upgrades under the Regulatory Period 4 (RP4) from 2025-2027, there is strong pipeline of opportunities for solar EPCC players like Northern Solar.
Having built a solid track record in solar EPCC and rooftop PV solutions, Northern Solar is now actively preparing to participate in LSS tenders and expand its presence in large-scale solar projects.
This marks a strategic shift for Northern Solar by enabling it to diversify its portfolio beyond rooftop solar into utility-scale solar farms.
In addition to the LSS programme, the group is expanding its participation in key national renewable energy initiatives, including the Corporate Green Power Programme (CGPP) and the upcoming Corporate Renewable Energy Support Scheme (CRESS), thus positioning itself at the forefront of Malaysia’s clean energy transformation.
“We are well-positioned to capitalise on this multi-decade renewable energy supercycle,” enthused Lew. “Our expertise in solar EPCC and rooftop PV solutions combined with our strong financial position, enables us to secure high-value contracts and contribute to Malaysia’s clean energy transition.”
With the additional capital of RM42.4 mil raised during its recent initial public offering (IPO) exercise, Northern Solar is set to expand its footprint in key states nationwide, particularly in Penang, Perak, Kedah, Perlis and Sabah.
At 12.23pm, Northern Solar was down 0.5 sen or 0.77% to 64.5 sen with 383,800 shares traded, thus valuing the company at RM255 mil. – Feb 21, 2025
