Northern Solar Holdings Bhd is strategically positioning itself to capitalize on Malaysia’s surging renewable energy market, fueled by large-scale solar (LSS) projects, national grid modernization efforts, and rising corporate demand for clean energy solutions.
The company reported a revenue of RM24.05 million for the third quarter (Q3) of the financial year ending December 31, 2024 (FY24), with a net profit of RM3.43 million, largely driven by its engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems.
For the first nine months (9M) of FY24, Northern Solar recorded a total revenue of RM64.2 million, with a net profit of RM10.86 million. Notably, the company achieved a gross margin of 33.8% in Q3 FY24 and 37.6% for the 9M FY24 period, underscoring its operational efficiency and cost discipline.
Positioning for Future Opportunities
With Malaysia’s solar energy sector set for substantial expansion, the company is aligning itself with upcoming LSS5, LSS5+, and LSS6 programs, which are expected to generate contracts worth between RM15 billion and RM18 billion over the next two years. Additionally, the RM42.8 billion investment in national grid modernization (RP4 2025-2027) presents further opportunities for solar EPCC firms.
Managing Director Lew Shoong Kai emphasized that maintaining strong financial performance and profitability in a competitive industry reflects Northern Solar’s strategic approach to market expansion.
“Our ability to sustain high gross margins and strong revenue growth highlights the company’s commitment to long-term value creation for shareholders,” he stated.
Expanding into Utility-Scale Solar
While Northern Solar has built a strong reputation in rooftop solar and EPCC solutions, it is now making a strategic shift towards utility-scale solar projects. The company is actively preparing to participate in large-scale solar tenders, further diversifying its project portfolio.
Beyond the LSS program, the company is leveraging key national renewable energy initiatives such as the Corporate Green Power Programme (CGPP) and the upcoming Corporate Renewable Energy Support Scheme (CRESS). These initiatives will allow the company to work alongside Solar Asset Developers and corporate off-takers via virtual power purchase agreements (VPPAs), enabling businesses to directly source renewable energy.
“The renewable energy industry is entering a multi-decade growth cycle, and Northern Solar is well-positioned to seize this momentum,” Lew added.
Regional Expansion and IPO Capital Deployment
Following a successful initial public offering (IPO) that raised RM42.4 million, the company is now expanding its presence in key regions, including Pulau Pinang, Perak, Kedah, Perlis, and the East Malaysian state of Sabah. This expansion is aimed at strengthening Northern Solar’s foothold in Malaysia’s renewable energy landscape, aligning with the nation’s clean energy transition goals.
By investing in high-value solar projects and forging strategic partnerships, Northern Solar is reinforcing its role as a key player in Malaysia’s push towards a more sustainable energy future.
