RE stocks climb on Cress push, Solarvest and Samaiden hit record highs

Renewable energy stocks outperformed the overall market on Bursa Malaysia on Monday, as Solarvest Holdings Bhd and Samaiden Group Bhd surged to new record highs. This positive performance followed the government's announcement of the Corporate Renewable Energy Supply Scheme (Cress) Acceleration Package last Friday. The Bursa Malaysia Energy Index climbed 8.16 points, or 0.99 percent, to 828.78, despite the broader market remaining largely down. The FTSE Bursa Malaysia KLCI index fell 1.21 points, or 0.07 percent.

Solarvest opened at RM3.42, up 2.70 percent from its previous close of RM3.33. By 11:40 am, the stock had risen an additional 36 sen, or 10.81 percent, to RM3.69, with trading volume exceeding 7.2 million shares. Solarvest's market capitalization reached approximately RM3.6 billion at that price. Samaiden also hit a record high, trading as high as RM2.30, marking its largest single-day gain of the year.

By 11:40 am, the stock stood at RM2.25, up 15.38 percent from its prior close, with trading volume surpassing four million shares. Its market value was estimated at about RM1.25 billion.

Other stocks in the ACE Market-listed category also performed well, with Pekat Group Bhd rising 5.69 percent to RM2.23 and Northern Solar Holdings Bhd climbing 9.42 percent to 75.5 sen, its highest level in over 11 months. Analysts from Hong Leong Investment Bank Bhd (HLIB) suggested that the Cress Acceleration Package could expedite project negotiations, potentially leading to first Cress projects for Solarvest and Samaiden within the next three months.

HLIB raised earnings forecasts for Solarvest and Samaiden, reflecting higher order book and margin assumptions, and maintained Buy ratings on both stocks.