KUALA LUMPUR: Samaiden Group Bhd is expected to gain from the implementation of quotas for 2.8 GW of new renewable energy (RE) capacities announced through various programmes, according to Rakuten Trade Sdn Bhd.
In fact, the research firm suggests that the stock may trend higher after breaking out from its one-month ascending triangle pattern.
Rakuten said that the new RE quotas will have a positive effect on solar engineering, procurement, construction, and commissioning (EPCC) players like Samaiden by encouraging new streams of contracts.
"We opine the rising momentum has a decent chance to kick-start a new upcycle and lift the stock towards the subsequent level of resistance of RM1.30, followed by RM1.35.
"On the downside, stop-loss is set at RM1.09, below the 20-day EMAs," said the research house.
The Net Energy Metering programme will continue with an additional 400 MW quota, according to the Ministry of Energy Transition and Public Utilities.
Additionally, the fifth bidding cycle of the large-scale solar (LSS) programme features quotas of 2 GW, allowing bids of up to 500 MW.
Samaiden announced on Tuesday that it has received permission to construct and operate a 7 MW biomass power plant in Tangkak, Johor, with a 6 MW net export capacity to Tenaga Nasional Bhd, starting on January 22, 2027, and lasting 22 years.
According to Rakuten, this represents a major shift in the company's growth trajectory.
It said that this development not only demonstrates Samaiden's commitment to sustainable energy production, but it also supports Malaysia's overarching goals for environmental sustainability and energy source diversification.
