Founder Group Limited Announces Additional US$8.6 Million Contract Under Malaysia’s Large Scale Solar Programme
Rhea-AI Summary
Founder Group (NASDAQ: FGL) secured an additional EPC contract worth RM34 million (~US$8.6 million) under Malaysia’s Large Scale Solar 5 (LSS5) programme for a 9.5 MW solar facility. The project is scheduled to reach commercial operation no later than May 1, 2027.
Founder Group’s total LSS5 contract value now stands at about RM70 million (~US$17.7 million). Management said it intends to pursue further awards under potential LSS6, CRESS and regional solar opportunities to build recurring revenue.
AI-generated analysis. Not financial advice.
Positive
- New EPC contract of RM34 million (~US$8.6M) for a 9.5 MW plant
- Total LSS5 contract backlog of RM70 million (~US$17.7M)
- Commercial operation target set for May 1, 2027
- Management intends to pursue LSS6 and CRESS opportunities to grow recurring revenue
Negative
- Project completion tied to a May 1, 2027 commercial-operation deadline
- Concentration of announced contracts in LSS5 Malaysia programmes increases policy dependency risk
News Market Reaction – FGL
On the day this news was published, FGL declined 18.06%, reflecting a significant negative market reaction. Argus tracked a trough of -56.1% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $440K from the company's valuation, bringing the market cap to $2.00M at that time. Trading volume was very high at 3.2x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
FGL is down 3.7% while 3 tracked peers (e.g., FBGL, SKK, SLND) also screen in momentum scanners to the downside (median about -3.3%), indicating broader weakness across related engineering/solar names rather than a purely idiosyncratic move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 16 | LSS5 solar contract | Positive | -1.7% | Secured RM19.5M (≈US$5M) EPC contract for 5.5MW LSS5 solar plant. |
| Mar 09 | CGPP solar contract | Positive | -4.7% | Won ≈RM16M (US$4.14M) EPCC contract for 25.4MW CGPP solar project. |
| Mar 03 | Nasdaq compliance | Positive | -5.4% | Regained compliance with Nasdaq minimum US$1 bid price requirement. |
| Feb 20 | Listing deficiency notice | Negative | -15.9% | Nasdaq notice of deficiency in minimum 500,000 publicly held shares. |
| Feb 06 | Share combination | Negative | -27.5% | 100-for-1 share combination to address Nasdaq bid price requirements. |
Recent history shows shares often trading lower on both positive contract wins and corporate/Listing Rule updates, with stronger declines around capital structure and listing compliance events.
Over the past few months, FGL has combined aggressive corporate actions with steady contract wins. A 100-for-1 share combination on Feb 10, 2026 and subsequent Nasdaq notices and compliance updates all saw negative 1-day price reactions, including -27.47% on the combination and -15.87% on the public-float deficiency notice. More recently, the company secured a US$4.14M CGPP contract and a US$5M LSS5 EPC contract, yet the stock still fell -4.72% and -1.67% respectively. Today’s additional LSS5 contract expands this growing solar EPC pipeline against that backdrop.
Market Pulse Summary
The stock dropped -18.1% in the session following this news. A negative reaction despite incremental EPC wins fits the recent pattern where FGL often traded lower on positive developments. The article adds a US$8.6M contract, raising LSS5 exposure to US$17.7M, yet prior contract and compliance news also saw one-day declines. Such behavior may reflect concerns around past corporate actions, market cap around $2.04M, and sector-wide softness, all of which could continue to influence sentiment regardless of operational momentum.
Key Terms
epcc technical
solar photovoltaic (pv) technical
large scale solar 5 (lss5) technical
battery energy storage systems (bess) technical
renewable‑energy (re) technical
corporate renewable energy sourcing schemes (cress) technical
AI-generated analysis. Not financial advice.
Company’s Total Contract Value Under Programme Now US
KUALA LUMPUR, Malaysia, March 25, 2026 (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, today announced that, in collaboration with a prominent solar investment company, it has secured an EPC contract valued at RM34 million (approximately US
As per the newly signed contract, Founder Group will undertake the design, construction, testing and commissioning of the 9.5 MW solar facility the Company agreed to build under LSS5 earlier this month. That facility is scheduled to achieve commercial operation not later than May 1, 2027.
To date, Founder Group has secured total contract value of about RM70 million (approximately US
Also known as Peralihan Tenaga SuRiA (PETRA), LSS5 is part of the Malaysian government’s ongoing efforts to achieve a target of 70 percent renewable‑energy (RE) installed capacity and carbon neutrality by 2050. This ambitious RE installed capacity is considered a significant step for the adoption of solar energy in the country, reinforcing the nation’s long‑term commitment to clean energy transition.
According to MBSB Investment Bank Bhd (MBSB Research), Malaysia may soon launch LSS6, potentially adding another 2GW of solar capacity alongside requirements for battery energy storage systems (BESS). This launch, said MBSB, could support a multi-year growth trajectory for solar players, with solar projected to account for more than half of Malaysia’s power capacity mix by 2050.
“This new LSS5 contract, coming shortly after our recently announced LSS5 award, demonstrates the accelerating trust in our technical capability and reinforces the momentum we are building across Malaysia’s utility‑scale solar market,” said Founder Group Chief Executive Officer Lee Seng Chi.
“The Company aims to leverage this milestone to secure additional contracts under LSS6, Corporate Renewable Energy Sourcing Schemes (CRESS) to create electricity from renewable sources, and from various regional solar opportunities, thereby laying the foundation for sustained recurring revenue generation.”
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:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com
