KUALA LUMPUR: JS Solar Holding Bhd has strong confidence in its ability to secure key solar engineering, procurement, construction, and commissioning (EPCC) contracts in Sabah.
This optimism follows the state’s implementation of Large Scale Solar initiatives (LSS1 and LSS2) aimed at accelerating the development of renewable energy infrastructure in the state.
With its proven track record and growing presence in the solar energy sector, JS Solar views the Sabah market as a promising growth area, and is well-positioned to play a pivotal role in advancing the state’s green energy ambitions.
“Sabah currently offers significant opportunities under the LSS1 and LSS2 programmes, along with the government’s implementation of the self-consumption initiative for rooftop solar.
“These efforts have opened up a market potential exceeding 300 MW in the state. That is why we are actively exploring the Sabah market – to capitalise on this growing demand and secure a substantial share,“ JS Solar managing director Johnson Chai Jeun Sian told reporters after the company’s debut on the ACE Market of Bursa Malaysia today.
JS Solar’s share price opened at 40 sen, representing a premium of 29% over its issue price of 31 sen, with an opening volume of 6.98 million shares.
Chai said while Sarawak remains on the company’s radar, JS Solar is currently placing greater emphasis on opportunities in Sabah. This strategic focus is driven by the absence of any recent policy announcements or new solar initiatives in Sarawak, in contrast to the more active developments seen in Sabah.
JS Solar currently holds a market share of 14.3%.
With the recent rollout of government enhancements – particularly the newly introduced Solar Atap (Solar Accelerated Transition Action Programme), the company anticipates a notable expansion of its market position as it capitalises on emerging opportunities in the renewable energy sector.
JS Solar remains focused on delivering its core EPCC services while actively collaborating with its investors to participate in upcoming initiatives such as the LSS5 and LSS5+ projects.
Looking ahead, JS Solar sees continued growth in market share, driven in part by the recent government announcement of Solar Atap.
Chai said this initiative effectively opens the market entirely, allowing consumers to maximise rooftop solar installations based on their electricity consumption or savings potential – creating significant new opportunities for industry players.
“We are taking an aggressive approach in participating in tenders and project opportunities. To date, we have submitted tenders worth over RM500 million, and based on experience, we typically achieve a success rate of around 10%.
“Currently, our major client is GSPARX Sdn Bhd, a wholly owned subsidiary of Tenaga Nasional Bhd (TNB). While we remain committed to strengthening our role as a strategic partner to GSPARX, we are also actively exploring opportunities to diversify our customer base moving forward,“ Chai said.
When asked about JS Solar’s strategy for diversifying its business, Chai said the company outlined several initiatives aimed at strengthening its market presence.
These include participating more actively in large-scale tenders and expanding the sales and support team to meet growing demand – especially in light of newly introduced government programmes.
Additionally, JS Solar plans to enhance its sales and marketing efforts to capture a broader client base.
While the company primarily focuses on EPCC services rather than owning or developing solar farms, it remains well-positioned to capitalise on related project opportunities.
JS Solar has already built a track record, including the successful completion of a small-scale Battery Energy Storage System (BESS) project in Kulim Hi-Tech Park in Kedah.
Looking ahead, the company sees promise in BESS as a growth area, although no formal contracts have been secured in that segment as of now.
“Our diversification strategy is multi-faceted. We are ramping up our participation in large-scale tenders, strengthening our sales and marketing teams, and closely monitoring emerging opportunities, like BESS.
“While we remain focused on our core EPCC capabilities, we are actively laying the groundwork to broaden our portfolio,” Chai said.
Of the RM24.18 million raised from the IPO, JS Solar has allocated RM3.20 million (13.23%) for regulatory fees and renovation costs of the new head office, RM12.72 million (52.61%) for the repayment of bank borrowings, RM1.55 million (6.39%) for business expansion and marketing activities, RM2.52 million (10.40%) for working capital, and RM4.20 million (17.37%) for the defrayment of listing expenses.
TA Securities Holdings Bhd serves as the principal adviser, sponsor, underwriter and placement agent, while Eco Asia Capital Advisory Sdn Bhd serves as the financial adviser for the IPO.