RENEWABLE energy (RE) solutions provider Northern Solar Holdings Bhd has rolled out strong financial performance for its 1Q FY3/2026 ended June 30, 2025 which reflects its solid execution of solar engineering, procurement, construction and commissioning (EPCC) projects and a strengthened platform for future growth.
The group’s pre-tax profit spiked 132.4% quarter-on-quarter (qoq) to RM5.57 mil (4Q FY3/3025: RM2.4 mil) while its net profit came in at RM3.85 mil on improved revenue recognition and operational efficiencies.
Revenue during the period under review edged up 35.8% to RM28.05 mil (1Q FY3/2026: RM20.7 mil) with growth primarily driven by higher project billings from EPCC activities which contributed RM27.4 mil or 97.8% of total revenue.
“The quarter’s solid revenue growth and profit improvement reflect our ability to deliver projects efficiently while maintaining disciplined cost control,” commented Northern Solar’s managing director Lew Shoong Kai.
“With our strengthened financial position post-IPO (initial public offering), we’re now actively preparing to participate in Malaysia’s upcoming large-scale solar opportunities.”
As of end-June 2025, Northern Solar’s balance sheet remained healthy with RM50.1 mil in cash and bank balances as well as a low gearing ratio of 0.12x.
This robust position provides the group with the flexibility to bid for larger and more complex projects while ensuring sustainability in operations.
As of July1 this year, the group’s order book stood at RM110 mil which reflects continued demand for solar EPCC services.
The group also maintains a robust tender book of RM1.96 bil which now includes submissions for utilities and large-scale solar (LSS) projects, underpinning strong earnings visibility.
As it is, Malaysia’s renewable sector continues to gain momentum with the government targeting a 70% RE mix by 2050.
Key initiatives under the National Energy Transition Roadmap (NETR) which include the Corporate Renewable Energy Supply Scheme (CRESS), the Community Renewable Energy Aggregation Mechanism (CREAM) and investments in Battery Energy Storage Systems (BESS) are expected to drive industry expansion.
In particular, the upcoming LSS5, LSS5+ and LSS6 programmes which are projected to unlock RM15 bil to RM18 bil in contracts over the next two years represent the largest solar roll-out in Malaysia’s history.
With a stronger balance sheet post-listing and proven EPCC expertise, Northern Solar is strategically positioned to participate in these opportunities.
“Looking ahead, we’re focused on expanding into large-scale solar projects while continuing to strengthen our recurring revenue segment from renewable energy generation,” projected Lew.
“Our strategy remains clear – to leverage our solid financial foundation, robust project pipeline and industry tailwinds to drive sustainable long-term growth and value creation for our shareholders.”
At the close of today’s (Aug 28) market trading, Northern Solar was down 0.5 sen or 0.69% to 72 sen with 1.44 million shares traded, thus valuing the company at RM285 mil. – Aug 28, 2025
