Founder Group Secures Contract Valued at US$2.6 Million to Build a Roof-Top Solar Generating Facility in Malaysia
Founder Group (NASDAQ: FGL) has secured a RM11.6 million (US$2.6 million) contract in Malaysia to build a roof-top solar PV generating facility. The Company will partner with a prominent Malaysian solar installation company, serving as contractor responsible for design, engineering, procurement, supply, delivery, construction, and commissioning.
The construction contract has an expected 2-year completion timeline, followed by an Operations and Maintenance agreement spanning 15-21 years. The project is anticipated to yield double-digit profit margins. This continues FGL's existing relationship with the partner company, with expectations for additional future contracts.
The contract aligns with Malaysia's ambitious renewable energy goals, as the government aims to increase renewable capacity to 40% (23GW) by 2035, up from 27% (12GW). Solar is projected to account for over 80% of the 11GW growth. The total EPCC contract market value has increased from RM7.4b to RM12.4b, indicating strong sector activity through end-2027.
Founder Group (NASDAQ: FGL) ha ottenuto un contratto del valore di RM11,6 milioni (US$2,6 milioni) in Malesia per costruire un impianto di generazione di energia solare fotovoltaica sul tetto. L'azienda collaborerà con una rinomata società malese di installazione solare, fungendo da appaltatore responsabile per la progettazione, l'ingegneria, l'approvvigionamento, la fornitura, la consegna, la costruzione e la messa in servizio.
Il contratto di costruzione prevede un tempo di completamento di 2 anni, seguito da un accordo di Operazioni e Manutenzione della durata di 15-21 anni. Si prevede che il progetto generi margini di profitto a due cifre. Questo continua la relazione esistente di FGL con la società partner, con aspettative per ulteriori contratti futuri.
Il contratto è in linea con gli ambiziosi obiettivi di energia rinnovabile della Malesia, poiché il governo mira ad aumentare la capacità rinnovabile al 40% (23GW) entro il 2035, rispetto al 27% (12GW). Si prevede che il solare rappresenti oltre l'80% della crescita di 11GW. Il valore totale del mercato dei contratti EPCC è aumentato da RM7,4 miliardi a RM12,4 miliardi, indicando una forte attività nel settore fino alla fine del 2027.
Founder Group (NASDAQ: FGL) ha conseguido un contrato de RM11,6 millones (US$2,6 millones) en Malasia para construir una instalación de generación de energía solar fotovoltaica en la azotea. La empresa se asociará con una destacada compañía de instalación solar de Malasia, actuando como contratista responsable del diseño, ingeniería, adquisición, suministro, entrega, construcción y puesta en marcha.
El contrato de construcción tiene un plazo de finalización de 2 años, seguido de un acuerdo de Operaciones y Mantenimiento que abarcará de 15 a 21 años. Se anticipa que el proyecto genere márgenes de beneficio de dos dígitos. Esto continúa la relación existente de FGL con la empresa asociada, con expectativas de contratos adicionales en el futuro.
El contrato se alinea con los ambiciosos objetivos de energía renovable de Malasia, ya que el gobierno busca aumentar la capacidad renovable al 40% (23GW) para 2035, frente al 27% (12GW). Se prevé que la energía solar represente más del 80% del crecimiento de 11GW. El valor total del mercado de contratos EPCC ha aumentado de RM7,4 mil millones a RM12,4 mil millones, lo que indica una fuerte actividad en el sector hasta finales de 2027.
Founder Group (NASDAQ: FGL)는 말레이시아에서 RM11.6백만(미화 260만 달러) 규모의 계약을 체결하여 옥상 태양광 발전 시설을 건설합니다. 이 회사는 말레이시아의 저명한 태양광 설치 회사와 협력하여 설계, 엔지니어링, 조달, 공급, 배송, 건설 및 시운전을 담당하는 계약자로 활동합니다.
건설 계약의 예상 완공 기간은 2년이며, 이후 15-21년 동안 운영 및 유지보수 계약이 이어집니다. 이 프로젝트는 두 자릿수의 이익률을 가져올 것으로 예상됩니다. 이는 FGL과 파트너 회사 간의 기존 관계를 지속하며, 향후 추가 계약에 대한 기대가 있습니다.
이 계약은 말레이시아의 야심찬 재생 에너지 목표와 일치하며, 정부는 2035년까지 재생 가능 용량을 40% (23GW)로 늘릴 계획입니다. 현재는 27% (12GW)입니다. 태양광은 11GW 성장의 80% 이상을 차지할 것으로 예상됩니다. 총 EPCC 계약 시장 가치는 RM7.4억에서 RM12.4억으로 증가하여 2027년 말까지 강력한 산업 활동을 나타냅니다.
Founder Group (NASDAQ: FGL) a obtenu un contrat de RM11,6 millions (2,6 millions de dollars américains) en Malaisie pour construire une installation de production d'énergie solaire photovoltaïque sur le toit. La société s'associera à une entreprise d'installation solaire malaisienne de premier plan, agissant en tant qu'entrepreneur responsable de la conception, de l'ingénierie, de l'approvisionnement, de la livraison, de la construction et de la mise en service.
Le contrat de construction a un délai d'achèvement prévu de 2 ans, suivi d'un accord d'exploitation et de maintenance d'une durée de 15 à 21 ans. Le projet devrait générer des marges bénéficiaires à deux chiffres. Cela continue la relation existante de FGL avec l'entreprise partenaire, avec des attentes pour des contrats supplémentaires à l'avenir.
Le contrat s'aligne sur les objectifs ambitieux de la Malaisie en matière d'énergie renouvelable, le gouvernement visant à augmenter la capacité renouvelable à 40% (23GW) d'ici 2035, contre 27% (12GW). On prévoit que le solaire représentera plus de 80% de la croissance de 11GW. La valeur totale du marché des contrats EPCC est passée de RM7,4 milliards à RM12,4 milliards, indiquant une forte activité dans le secteur jusqu'à la fin de 2027.
Founder Group (NASDAQ: FGL) hat einen Vertrag über RM11,6 Millionen (US$2,6 Millionen) in Malaysia gesichert, um eine Solaranlage zur Stromerzeugung auf dem Dach zu bauen. Das Unternehmen wird mit einem renommierten malaysischen Solarinstallationsunternehmen zusammenarbeiten und als Auftragnehmer fungieren, der für Design, Engineering, Beschaffung, Lieferung, Bau und Inbetriebnahme verantwortlich ist.
Der Bauvertrag hat einen erwarteten Fertigstellungstermin von 2 Jahren, gefolgt von einem Betriebs- und Wartungsvertrag, der sich über 15-21 Jahre erstreckt. Es wird erwartet, dass das Projekt zweistellige Gewinnmargen erzielt. Dies setzt die bestehende Beziehung von FGL zu dem Partnerunternehmen fort, mit Erwartungen an zusätzliche zukünftige Verträge.
Der Vertrag steht im Einklang mit Malaysias ehrgeizigen Zielen für erneuerbare Energien, da die Regierung plant, die erneuerbare Kapazität bis 2035 auf 40% (23GW) zu erhöhen, im Vergleich zu 27% (12GW). Es wird prognostiziert, dass Solar über 80% des Wachstums von 11GW ausmachen wird. Der Gesamtwert des EPCC-Vertragsmarktes ist von RM7,4 Milliarden auf RM12,4 Milliarden gestiegen, was auf eine starke Aktivität im Sektor bis Ende 2027 hinweist.
- Secured US$2.6 million contract with guaranteed long-term revenue stream (15-21 years)
- Project expected to generate double-digit profit margins
- Strong potential for additional contracts with the same partner
- Operating in growing market with increasing government renewable energy targets
- Long 2-year construction period before revenue generation
Insights
Founder Group's $2.6 million Malaysian solar contract represents approximately 10.3% of their current $25.2 million market capitalization, making this a material win for a company of their size. The disclosed double-digit profit margin indicates healthy profitability that should directly enhance bottom-line performance.
What's particularly valuable here is the dual revenue structure. Beyond the initial 2-year construction phase, the subsequent Operations & Maintenance agreement creates a 15-21 year recurring revenue stream that provides significant visibility into future cash flows. This predictable long-term income typically commands higher valuation multiples than one-off project work.
The established relationship with a prominent Malaysian solar installer creates a competitive advantage for securing future contracts, essentially building a moat in the regional EPCC solar market. With Malaysia's solar market expanding rapidly to meet the government's 40% renewable target by 2035, FGL is positioning itself to capture additional market share in what the article confirms is now a RM12.4 billion EPCC contract market.
While a single contract doesn't transform FGL's financial profile overnight, the combination of immediate revenue recognition, healthy margins, and locked-in future maintenance income materially improves their business outlook and financial stability.
This contract positions Founder Group strategically within Malaysia's accelerating solar transition. The timing is particularly advantageous as Malaysia has recently raised its renewable targets to 40% capacity (23GW) by 2035, with solar expected to comprise over 80% of the 11GW growth required to meet these goals.
The Malaysian government's initiation of a new large-scale solar (LSS) wave adding 2GW of capacity signals strong policy support that will create sustained demand for solar EPCC providers through at least 2027. For context, the overall EPCC market growth from RM7.4 billion to RM12.4 billion represents a 67.6% expansion in available contract opportunities.
Rooftop solar installations like this one typically offer faster deployment and fewer regulatory hurdles than ground-mounted systems, allowing for quicker revenue recognition while delivering comparable margins. The partnership with a major supplier of solar PV mounting systems provides technical advantages in implementation.
The extended O&M component ensures FGL participates in the full lifecycle value of the installation rather than just the construction phase, maximizing total contract value. This broader market expansion combined with FGL's established industry relationships creates significant runway for capturing additional projects as Malaysia pushes toward its ambitious renewable targets.
KUALA LUMPUR, Malaysia, March 20, 2025 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic (PV) systems in Malaysia, is pleased to announce it has secured a contract worth RM11.6 million (approximately US
The Company is contracting with a prominent solar installation company by project size in Malaysia and has a solid track record in the industry. It is also a major supplier of solar PV mounting structural system that is designed in-house, and the sole supplier and implementor of ground mounted tracking system in Malaysia. Over the years, this solar company has invested in and completed several end-to-end solar PV projects and has provided business synergies and cost efficiencies, which has strengthened its credibility as a solar installer.
Founder Group will serve as a contractor, responsible for the design, engineering, procurement, supply, delivery, construction and commissioning of a roof-top solar PV generating facility with nominal capacity.
This partnership will be a construction contract that is expected to be completed in 2 years. Upon completion of the facility construction, the Company will sign an Operations and Maintenance agreement which will provide benefits over the next 15 to 21 years. In the past, Founder Group has secured contracts with this solar installation company for similar types of facilities and expects additional contracts from them over the next few years. This project is expected to be profitable with a double-digit profit margin.
“We are proud that we were able to secure this tremendous contract and continue our on-going partnership with a company that has become one of the premiere solar installation businesses in Malaysia. Both of our companies share the same vision of working together to support the country’s renewable energy goals and promote a greener, more sustainable future. Additionally, this contract will provide opportunities for recurring revenue and margin growth which we expect will drive considerable value for our shareholders,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited.
According to a recent research report by Kenanga issued on January 20, 2025, the Malaysian government has increased its renewable energy targets to achieve
About Founder Group Limited
Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon-neutrality.
For more information on the Company, please visit https://www.founderenergy.com.my/.
Safe Harbor Statement
This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.
CONTACT INFORMATION:
For media queries, please contact:
Founder Group Limited
info@founderenergy.com.my
Investor Relations Inquiries:
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Scott Powell, President
1177 Avenue of the Americas, 5th Floor
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Office: (646) 893-5835
Email: info@skylineccg.com
FAQ
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