SLVEST entered into a Share Sale Agreement (SSA) to acquire a 22.0% equity stake in Solar District Cooling Group Berhad (SDCG) for a cash consideration of RM42.0 mil, equivalent to RM0.45/share.
SDCG, an ACE Market-listed company, is principally involved in the provision and maintenance of building management systems (BMS), solar thermal systems, and energy-saving and mechanical and electrical services.
The acquisition was completed on 23 Dec 2025 and funded entirely via internally generated funds. “Following the acquisition, SLVEST became a substantial shareholder of SDCG, which will be accounted for as an associate,” said APEX Securities.
Based on SDCG’s annualised nine months of financial year 2025 (9MFY25) profit after tax (PAT) of RM5.2 mil, SLVEST’s acquisition of a 22.0% stake implies a P/E valuation of 36.6x, which we view as fair.
While the implied P/E is high, SDCG’s share price has not traded below RM0.45 since listing, suggesting market confidence in its growth prospects and long-term outlook.
Strategically, the acquisition supports technology integration and customer mapping, which is expected to enhance cross-selling opportunities and deepen engagement with existing and new customers.
The investment also benefits from BMSdriven recurring and project-based income, including government and data centre-related projects, which supports medium-term earnings visibility.
“We believe SLVEST is well-positioned to capitalise on government renewable energy
initiatives, thanks to its unique in-house solar financing and its position as Malaysia’s largest solar EPCC player,” said APEX.
Risks identified are such as the increase in solar module costs, heavy reliance on government initiatives and intense market competition. —Dec 24, 2025
Main image: Solarvest
