ACE Market-listed Northern Solar Holdings Bhd has delivered a commendable FY3/2025 performance with a revenue of RM84.9 mil which was primarily driven by robust project execution within its core engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems segment.
The renewable energy solutions provider further posted a core net profit of RM14.2 mil after adding back its one-off IPO (initial public offering) listing expenses of RM2.76 mil incurred during the financial year.
For its 4Q FY3/2025 ended March 31, 2025 specifically, the group’s core net profit after adding back its IPO expenses was RM3.3 mil which was broadly stable compared to its preceding quarter’s earnings of RM3.4 mil, a positive sign of sustained operational efficiency.
“Our IPO in February 2025 significantly enhanced our balance sheet by providing us with a strong foundation to expand into larger-scale solar projects,” commented Northern Solar’s managing director Lew Shoong Kai.
“Our strengthened financial position places us in a favourable position to pursue strategic growth opportunities, particularly in the large-scale solar (LSS) segment.”
As of end-March 2025, Northern Solar maintained a healthy unbilled order book of RM70 mil which indicated clear earnings visibility into the next financial year.
Moreover, the group holds a robust tender book of approximately RM1.8 bil which notably excludes potential contributions from upcoming LSS projects. This substantial tender pipeline underscores its strong growth prospects.
Northern Solar’s financial standing post-IPO remains robust as reflected in a solid cash balance of RM52.2 mil and a low gearing ratio of just 0.15 times.
The group’s financial stability is further strengthened by healthy operating cash flows amounting to RM7.2 mil generated during its FY3/2025.
Looking ahead, the outlook for Malaysia’s renewable energy industry remains highly positive, supported by the government’s firm commitment under the National Energy Transition Roadmap (NETR) to achieve a 70% renewable energy mix by 2050.
Upcoming initiatives which include the LSS schemes (LSS5, LSS5+ and LSS6) are projected to unlock between RM15 bil and RM18 bil in EPCC opportunities within the next two years, hence providing substantial growth potential for the group.
“Northern Solar is now actively eyeing opportunities in these large-scale initiatives alongside the Corporate Renewable Energy Support Scheme (CRESS) and Corporate Renewable Energy Agreement Model (CREAM),” projected Lew.
“We’re optimistic about capturing our fair share of these major projects, thus enhancing our project pipeline and reinforcing our growth trajectory.”
Additionally, Northern Solar also remains focused on expanding its recurring income streams.
Currently operating approximately 5MW of renewable energy generation assets, the group aims to triple this capacity in the upcoming financial year. This strategic move is expected to contribute to earnings stability by further strengthening its financial profile.
At the close of today’s (May 26) market trading, Northern Solar was down 2 sen or 3.33% to 58 sen with 139.800 shares traded, thus valuing the company at RM229 mil. – May 26, 2025
