JS Solar Holding Berhad (JSSOLAR)

1. IPO Overview

• IPO price: RM0.31 per share

• Listing date: 23 September 2025 (ACE Market, Bursa Malaysia)

• Proceeds: ~RM24.18m

• Use of funds:

  • 52.6% → Debt repayment (positive for gearing)

  • 17.4% → Listing expenses

  • 13% → Office & regulatory

  • 10.4% → Working capital

  • 6% → Expansion & marketing

• Post-listing market cap: ≈ RM100.8m

• FY2025 P/E ratio: ~12.6×

• Peers' P/E range (ACE Market solar EPCC players):

  • Samaiden: ~21×

  • Solarvest: ~18×

  • Pekat Group: ~16×

  • JSSOLAR: 12.6× → cheaper than peers ✅

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2. Growth Catalysts ✅

(A) Malaysia’s Renewable Energy Push

• Government target: 70% renewable energy by 2050.

• Solar PV is the fastest-growing segment → directly benefits JS Solar.

(B) Strong Project Track Record

• Installed capacity: ≈376 MWp.

• Recent consortium win: RM100m contract with Samaiden for 50 MW plant in Kulim Hi-Tech Park.

(C) Revenue & Profit Growth

FY Year	Revenue	Net Profit (PAT)	YoY Growth
FY2023	RM70.3m	RM0.96m	—
FY2024	RM139.7m	RM4.7m	↑388%
FY2025	RM186.5m	RM8.0m	↑70%

Earnings CAGR ≈ 143% (FY23–FY25) → very strong.

(D) Entry into BESS (Battery Energy Storage)

• Solar + battery integration = future-proof positioning.

• Expanding into Sabah & Johor for utility-scale projects.

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3. Risks to Watch ⚠️

Risk Factor	Impact	My View
Customer concentration	~70% of revenue from one major client (GSPARX, a TNB affiliate)	High risk if GSPARX slows projects
Small order book	RM39.7m backlog ≈ only 0.22× FY25 revenue	High risk for short-term traders
ACE Market volatility	Must secure new projects to sustain growth	Small-cap stocks can swing ±30% on listing
Margin pressure	Solar EPCC margins are thin (~4–5% PAT)	Needs scale to improve profitability
Working capital stress	Operating cash flow volatile in FY25	IPO proceeds will help reduce debt, positive ✅

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4. Investment View 🎯

Valuation

• IPO P/E ~12.6× → discount vs peers (16×–21×).

• If JSSOLAR re-rates to 16× P/E post-listing:

  • Fair value ≈ RM0.39/share → 26% upside.

Bull Case (RM0.45–0.50, +45–60%)

• Secures large utility-scale projects

• Expands into BESS successfully

• Maintains 30–40% revenue growth

Base Case (RM0.36–0.39, +15–26%)

• Achieves steady ~20% growth

• Margins remain stable, P/E aligns with Solarvest/Pekat

Bear Case (RM0.24–0.26, -15–20%)

• Slow order wins + customer loss

• Margins compress due to cost inflation

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5. My Recommendation 🟢

• Type of Investor:

  • Long-term investor (2–3 years) → YES, can consider ✅

  • Short-term trader → Listing day may see volatility; best to wait for price consolidation.

• Ideal entry price: RM0.30–RM0.32 (IPO level or slight dip after listing).

• Target price (12–18 months): RM0.39–RM0.45 (+25% to +45%).