IPO FACTSHEET

NORTHERN SOLAR HOLDINGS BERHAD

ACE MARKET | 6 FEBRUARY 2025 | INDUSTRIAL PRODUCTS AND SERVICES | SHARIAH COMPLIANT

IPO STATISTICS

IPO Price (RM) 0.63 Use of Proceeds (RM42.4 million from new issue)
Fund Raised (RM Million) 42.4 from new issue Proceed Utilisation RM million
22.4 from offer for sale Working capital 29.17
TOTAL: 64.8
Repayment of bank borrowings 5.50
Enlarged issued share capital upon 395.60
listing (million shares) Business expansion 3.15
IPO Market Capitalisation (RM 249.23 Estimated listing expenses 4.55
million) Total 42.37
Price Earnings Ratio (PER) 24.7 (based on FYE2024 PAT)
16.8 (based on annualised FPE2025
PAT)

FYE – Financial year ended 31 March, FPE – Financial period ended 30 September (6 months), LPD – Latest practicable date 19 November 2024

BUSINESS OVERVIEW

Business Activities Competitive Strengths

• High-grade contractor – Northern Solar is a Grade 7 contractor,
Northern Solar Holdings Berhad is a solar energy company specialising
the highest accorded grade issued by under the Construction
in engineering, procurement, construction and commissioning (EPCC),
Industry Development Board (CIDB), which allows it to undertake
generation of renewable energy and operations & maintenance (O&M).
projects of any size and unlimited value in Malaysia.
• Proven track record – As at LPD. Northern Solar has installed a
Business Model
total capacity of 71.9 MWp across residential, commercial and
industrial buildings under the NEM and SELCO programmes.
• Strategic partnerships – Northern Solar is working with its
substantial shareholder Lagenda Properties Bhd on the installation
of solar photovoltaic (PV) panels in residential and commercial
projects that are developed by Lagenda. In addition, Northern
Solar is collaborating with Engtex Group Bhd as a solar PV asset
developer through a 20% in Engtex Energy. Engtex Energy has
brought in EPCC jobs to Northern Solar worth RM4.63 mil and
RM0.94 in FYE2024 and FPE2025 respectively.
1. EPCC
Engineering design and planning, procurement and supply, Key growth drivers:
construction, installation, testing and commissioning of solar PV • Government initiatives – Malaysia is aiming to reduce greenhouse
systems for commercial, industrial and residential buildings. gas (GHG) emissions and become a carbon neutral country by
2050 by switching from fossil fuels to clean energy sources. To
2. Generation of renewable energy achieve this, the government has rolled out frameworks and
The company operates and maintains rooftop solar PV systems that policies such as the National Energy Policy (NEP), National Energy
generate and sell electricity to Net Energy Metering (NEM) and Self- Transition Roadmap (NETR), Corporate Green Power Programme
Consumption (SELCO) consumers in Peninsular Malaysia. (CGPP), Large Scale Solar (LSS) and green investment tax
incentives that will drive solar adoption.
3. O&M of solar PV equipment and systems • Lower input costs – Solar PV costs have declined 82% from 2010
Provision of O&M services for solar PV equipment and systems installed to 2019 with the average levelized cost of electricity (LCOE) of solar
in commercial, industrial and residential buildings. PVs becoming comparable with the LCOE of conventional coal
and gas generation. The lower equipment and construction costs
make solar PV a more viable option for homeowners as well as
commercial and industrial owners.
• Growth in property market and urbanisation – Growth in
residential and industrial property markets as well as urbanisation
support the solar industry due to higher demand for renewable
energy.

GROWTH STRATEGIS AND FUTURE PLANS

• Setting up a new corporate office (RM2.0 mil). In November 2024, Northern Solar has relocated to a bigger corporate office to accommodate a
bigger workforce, centralise its business operations and enhance its corporate image. The new office also houses its engineering knowledge centre.
• Geographical expansion (RM0.6 mil) – Northern Solar is expanding its Johor regional office and setting up a new Penang regional office to boost
its market presence in the north and south.
• Increase capacity and market share (RM29.2 mil) – The company is using the lion share of its IPO proceeds for working capital to hire new
employees (RM1.8 mil) comprising project engineers, O&M engineers, technicians and business development executives, and purchase project
materials (RM27.4 mil). The enlarged working capital will enable the company to bid for more EPCC contracts and increase its market share. As at
LPD, Northern Solar has submitted 387 tenders with a total value of RM1.8 bil.
• Grow renewable energy generation - As of LPD, Northern Solar owns and manage 17 solar PV systems under the group and 4 solar PV systems
under associate Engtex Energy. The company intends to increase its solar PV assets to sell electricity to NEM and SELCO consumers to generate
recurring and stable inflow of revenue.

All information in the factsheet is extracted from the prospectus unless stated otherwise. Investors should make the investment decision by referring to the prospectus for full details.
Prepared by Bursa Digital Research. Kindly refer to the disclaimer on the last page.
PROMOTERS & SUBSTANTIAL SHAREHOLDERS
Promoter/ Substantial Shareholder Designation Shareholding after IPO (%)
Direct Indirect
Lew Shoong Kai (1) Managing director 30.8 -
Chew Win Hoe (1) Executive director 30.8 -
Lagenda Properties Bhd (1) - 12.5 -
Dato’ Doh Jee Ming (2) - 12.5
Dato Doh Tee Leong (2) - 12.5
Dato Doo Jee Chai (2) - 12.5
(1) In accordance with Rule 3.19(1) of the ACE Market Listing Requirements, a moratorium will be imposed on the sale, transfer or assignment of shares to the entire shareholdings for a period of 6
months from the date of admission to the ACE Market, and hold an aggregated shareholding amounting to at least 45% for another 6 months, and may sell, transfer or assign up to a maximum of
1/3 per annum (on a straight-line basis) upon expiry of the second 6-month moratorium.

(2) Deemed interested by virtue of their shareholdings in Lagenda.

Group Structure after IPO

(1) The substantial shareholders of Lagenda Properties are Lagenda Land Sdn Bhd, Dato’ Doh Jee Ming, Dato’ Doh Tee Leong and Dato’ Doh Jee Chai
(2) Assuming all eligible directors, employees and persons fully subscribe to the shares allocated to them
(3) The remaining 80% shares are held by Engtex Group Bhd
(4) The remaining 49% shares are held by Tew Liang Tze and Hawthorne Solar Sdn Bhd

RELATED PARTY TRANSACTIONS

• In July 2024, Northern Solar started renting its new corporate office in Petaling Jaya from its substantial shareholder Lagenda Properties at RM26,722 per
month which is on an arm’s length basis.

KEY RISK FACTORS

• Ability to replenish orderbook – As at LPD, Northern Solar’s orderbook stands at RM83.2 mil, which is 1.7 times of its average revenue of RM48.3
mil from FYE 2022 to FYE 2024. EPCC projects are non-recurring in nature and are secured on a project-by-project basis. Financial performance may be
impacted, depending on the company’s ability to secure new contracts which are similar or higher in value.
• Government policies – The rapid growth of solar energy in recent years is hugely attributed to government incentives and policies to encourage the
development of renewable energy. Any reduction in government support towards the sector could affect demand for solar energy.
• Ability to adapt to technology developments – The solar PV industry is highly dependent on technology, which is dynamic and evolving. Solar companies
need to keep pace with technological advances and developments. Northern Solar does not conduct research and development and may require time to
study new technology and improve its technical knowledge.
• Net loss on impairment due to unrecoverable receivables - In FYE2024, Northern Solar recorded impairment losses on trade receivables of RM1.8 mil or
18.2% of PAT. In FPE2025, it posted impairment losses of RM2.3 mil being the amount owed by 47 customers which were deemed unrecoverable beyond
the 90-day credit period. However, as at LPD, RM1.4 mil has been partially collected and there was also a reversal of impairment amounting to RM0.6 mil.

FINANCIAL PERFORMANCE

Revenue and GP Margin Profit and Margin

100.0 39.8% 50%
15.0 30%
22.7% 27.7%
80.0 40%
12.7
25.3% 10.0 20%
60.0 30%
78.0 9.8
40.0 20% 7.2 10.1
44.7 5.0 6.1 7.4 10%
20.0 40.2 10% 3.3 3.1
22.2 0.0 0%
0.0 0%
FYE2022 FYE2023 FYE2024 FPE2025
FYE2022 FYE2023 FYE2024 FPE2025
PBT (RM mil) PAT (RM mil)
Revenue (RM mil) GP Margin (%)
PBT Margin (%) PAT Margin (%)
 Revenue Breakdown by Type of Property GP margin by segment

Commercial and Industrial Residential 120%

100% 91%
FPE2025 75.9% 24.1% 78%
80% 73%
61%
FYE2024 60%
87.0% 13.0% 39%
40% 23% 25% 27%
FYE2023 88.7% 11.3% 20%
0%
FYE2022 97.3% 2.7% FYE2022
0% FYE2023 FYE2024 FPE2025

EPCC Generation of renewable energy O&M

Annual installed capacity (kWp) Cumulative installed capacity (kWp)

30,000 25,392 80,000 67,844 71,851

25,000 54,240
60,000
20,000
14,115
15,000 40,000
9,798 9,698 25,697 28,542
10,000
3,150 3,906 2,822 20,000 9,950 15,649 13,604
5,000 1,534 1,185 10,408 4,007
152
0 0
FYE2022 FYE2023 FYE2024 FPE2025 Up to LPD FYE2022 FYE2023 FYE2024 FPE2025 Up to LPD
Commercial and industrial Residential Total Cumulative

Number of existing and new projects Revenue from existing and new projects (RM million)

1,000 100
792 77.03
800 80 72.43
587 644
600 516
60 44.26 39.60
400 244 297 276 40 35.30
27.31
10.98 22.23
106
200 28 78 53 57 20 11.25 8.97
4.60
12.29
0 0
FYE2022 FYE2023 FYE2024 FPE2025 FYE2022 FYE2023 FYE2024 FPE2025
Existing New Total Existing New Total

Key Financial Ratios Peer Analysis

FYE2022 FYE2023 FYE2024 FPE2025 Solar EPCC Revenue PAT PAT PER(1) Forward(2)
Trade receivables 34 49 47 71 companies (RM m) (RM Margin (x) PER (x)
turnover period (days) m) (%)
Trade payables 61 62 45 66 Solarvest 497.0 32.6 6.6 32.9 25.5
turnover period (days) Pekat Group 227.5 13.7 6.0 35.0 38.1
Inventories turnover 57 42 35 43
period (days) Samaiden 227.2 16.1 7.1 32.2 24.1
Current ratio (times) 1.6 1.9 2.4 1.9 Sunview Group 465.9 9.7 2.1 22.4 25.3
Gearing ratio (times) 0.2 0.7 0.3 0.9
Northern Solar 78.0 10.1 12.9 24.7 -

Based on financial data from the latest available FYE except:

(1)
P/E ratio as of 2 January 2025
(2)
Based on Bloomberg estimates

Cashflow Dividend
RM million FYE2021 FYE2022 FYE2023 FYE2024 Northern Solar does not have a formal policy. Any dividend payout will depend
Net operating cashflow 0.89 2.41 7.64 3.66 on its financial performance, capex requirements, financial condition and other
Net investing cashflow -0.21 -1.61 -5.56 -2.32 factors. Dividends declared and paid by during FYE2021 to FPE2025 are as
follow:
Net financing cashflow 0.40 4.36 -0.93 5.81
FYE2022 FYE2023 FYE2024 FPE2025 Up to
Net change in cash 1.09 5.15 1.14 7.14 LPD
Beginning cash balance 1.13 2.22 7.37 8.53 Dividends - - - 5.0 -
declared and
Ending cash balance 2.22 7.37 8.53 15.65
paid (RM mil)
* From 1 April 2024 up to the LPD

INDUSTRY OVERVIEW

• Independent market researcher (IMR) projects the solar EPCC services industry to grow at a CAGR of 23.5% to RM1.5 bil in 2026 from RM797 mil in 2023 on the
back of higher adoption of solar energy, continuous investments in solar PV systems and facilities, population growth and urbanisation, growing demand for
electricity, foreign and domestic investment growth, declining construction costs as well as recovery and growth in the property market.
• Based on the total installed capacity for solar PV systems and facilities of 1,933 MW in 2022, Northern Solar garnered a market share of 1.3% with its cumulative
installed capacity of 25.7 MW.
 Installed capacity for solar PV systems and facilities in Malaysia (MW) Solar EV EPCC services industry in Malaysia (RM mil)

2,500 1,400
1,933 1,178
1,200
2,000 1,787
1,483 1,000 838 806 797
1,500 664
800
894 600
1,000
589
400
500 349 304
146 200
0 0
2019 2020 2021 2022 2019 2020 2021 2022 2023e

Total installed capacity New built capacity

e: IMR estimates

ESG PRACTISES
The Group has implemented, and are in the midst of implementing, the following practices:

Environmental Practices Social Practices Governance Practices

• Minimise energy consumption and • Aligned with the International Labour • Adopted the Malaysian Code on Corporate
carbon footprint through investments in Organisation’s Fair Recruitment Initiative. Governance (MCCG)
renewable energy sources and improve • Donations and sponsorships to charity • Anti-bribery and whistleblowing policies
energy efficiency. organisations.
• Decrease water consumption through • Safeguarding against cybercrime through
water conservation practices. routine information technology risk
assessments

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