KUALA LUMPUR - Founder Group Limited (NASDAQ: FGL), a provider of engineering and construction services for solar photovoltaic systems with a market capitalization of $32.15 million, announced today it has been awarded a contract for a floating solar farm project in Kuala Langat, Selangor, Malaysia. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value. The Letter of Award (LOA), valued at approximately US$4.5 million, tasks the company with constructing a 9.99MWac/15.033625MWp solar power facility over a 24-acre water body, employing floating photovoltaic (FPV) technology.
FPV systems, which consist of solar panels mounted on buoyant structures, offer the advantage of conserving land and optimizing energy production. This project aligns with Founder Group's mission to deliver sustainable and innovative energy solutions, and it is a step forward in the company's commitment to support Malaysia's renewable energy objectives and carbon neutrality ambitions. The company has maintained a gross profit margin of 11% over the last twelve months, with total revenue of $23.27 million.
As a subcontractor, Founder Group is responsible for providing the workforce, hand tools, materials, and machinery necessary for the project. The completion date for the floating solar farm is set for June 30, 2025.
With a strong YTD return of 47.29% and an overall Financial Health score rated as FAIR by InvestingPro, the company shows promising momentum. Lee Seng Chi, CEO of Founder Group, expressed pride in the company's involvement in the project and its potential to bolster the group's growth while advancing Malaysia's green initiatives. Unlock more insights and exclusive ProTips about FGL's financial performance with an InvestingPro subscription.
Founder Group Limited specializes in the engineering, procurement, construction, and commissioning of large-scale and commercial solar power projects in Malaysia. The company's focus is on delivering eco-friendly resources and achieving carbon-neutrality.
This press release includes forward-looking statements which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. With revenue growth forecast at 75% for FY2024, investors can access detailed analysis and additional metrics through InvestingPro. Founder Group has based these forward-looking statements on its current expectations about future events and has stated that it will not update these statements unless required by law.
The information in this article is based on a press release statement from Founder Group Limited.
In other recent news, Malaysian solar engineering and construction firm, Founder Group Limited, has secured Letters of Award amounting to approximately $5.5 million for large-scale solar projects. The contracts represent a significant addition to the company's portfolio, encompassing a variety of responsibilities including full engineering, procurement, construction, and commissioning (EPCC) services, and the installation of DC and AC electrical systems. These projects are part of the Corporate Green Power Programme and a utility-scale solar initiative, demonstrating Founder Group's versatility in meeting the multifaceted demands of large-scale solar projects.
The solar EPCC services market in Malaysia is projected to reach approximately $350 million by 2026, driven by the country's dedication to renewable energy. The Malaysian government's goal is to elevate the renewable energy mix from 2% in 2018 to 20% by 2025, supported by initiatives such as the Green Technology Financing Scheme and the Solar for Rakyat Incentive Scheme (SolaRIS).
Founder Group CEO, Lee Seng Chi, expressed satisfaction with the confidence project owners have demonstrated in the company and reaffirmed the firm's commitment to Malaysia's renewable energy transition. The firm is prepared to apply its expertise in future solar photovoltaic projects. These developments are recent, and it's important to note that forward-looking statements involve risks and uncertainties, as per Founder Group's filings with the U.S. Securities and Exchange Commission.
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