Founder Group Secures Conditional Letter of Award Worth Approximately US$68 Million for a 100MW Solar Farm in Malaysia

Rhea-AI Summary

Founder Group (NASDAQ: FGL) has secured a conditional Letter of Award worth approximately US$68 million for developing a 100-megawatt solar farm in Tanjung Malim, Malaysia. The 900-acre project will power an AI data center in Enstek City, with Founder Group serving as the EPC partner alongside Hexatoff Group.

The project aligns with Malaysia's National Energy Transition Roadmap and reflects the country's growing solar EPCC services industry, projected to reach US$350 million by 2026 with a CAGR of 23.5%. This development supports Malaysia's position as a leading hub for AI and digital infrastructure in Southeast Asia.

Positive

• Secured major contract worth US$68 million for 100MW solar farm development
• Project provides steady revenue stream through power supply to AI data center
• Partnership with government-registered Hexatoff Group (G7 license holder) strengthens market position
• Enters growing market with 23.5% CAGR projection through 2026

Negative

• Contract is conditional, indicating execution risks
• Large project size (900 acres) may present operational challenges

Insights

Financial Analyst

The $68 million solar farm contract represents a significant win for Founder Group, equating to nearly the company's entire market cap of $72.7 million. This major EPC project demonstrates strong revenue potential and strategic positioning in Malaysia's rapidly growing renewable energy sector, which is projected to reach $350 million by 2026 with a robust 23.5% CAGR.

The partnership with Hexatoff Group, a G7-licensed contractor, adds credibility and local expertise to execute this large-scale 100MW project. The solar farm's dedicated purpose of powering an AI data center provides revenue visibility and aligns with Malaysia's digital infrastructure growth plans. This contract could significantly boost FGL's order book and future earnings potential, while establishing the company as a key player in Malaysia's renewable energy transition.

Energy Infrastructure Expert

The 100MW solar farm project is strategically significant, combining renewable energy with data center infrastructure. The 900-acre development will provide dedicated power to an AI data center, representing an innovative approach to sustainable data center operations. This integration of solar power with AI infrastructure demonstrates the evolving landscape of renewable energy applications in Southeast Asia.

The project aligns perfectly with Malaysia's National Energy Transition Roadmap (NETR) initiatives, positioning FGL to benefit from government support and increasing corporate demand for renewable energy solutions. The focus on utility-scale storage systems and renewable energy zones suggests potential for future project opportunities beyond this initial contract.

KUALA LUMPUR, Malaysia, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), is proud to announce that it has been awarded a conditional Letter of Award (LOA), valued at approximately US$68 million (around RM299,260,000), for the development of a 100-megawatt solar farm in Tanjung Malim, Malaysia. Spanning 900 acres, the solar farm will serve as a critical energy source, providing 100MW of export capacity to power an advanced AI data center in Enstek City, Malaysia. Founder Group will act as the Engineering, Procurement, and Construction (EPC) partner for this transformative project.

Hexatoff Group Sdn. Bhd. (“Hexatoff Group”), the key collaborator in this project, is a turnkey solutions provider specializing in infrastructure and building construction. The company is registered with the Ministry of Finance Malaysia and holds the nation’s highest-grade construction license (G7). This partnership is poised to strengthen Malaysia’s position as a leading hub for AI and digital infrastructure in Southeast Asia, furthering the country’s aspirations in cutting-edge technology and sustainable development.

Malaysia’s solar EPCC services industry is projected to reach approximately US$350 million (about RM1.5 billion) by 2026, with a compound annual growth rate (CAGR) of 23.5%, reflecting the country’s strong commitment to renewable energy. This commitment is further emphasized by the launch of Malaysia's National Energy Transition Roadmap (NETR) in August 2023, which aims to enhance the country’s renewable energy capacity. The roadmap focuses on solar installations, renewable energy zones, and utility-scale storage systems, as outlined by the Malaysian Investment Development Authority (MIDA). As these government initiatives take shape, they are increasingly driven by corporate sustainability goals in sectors such as data centers and semiconductors, which in turn present significant opportunities for Engineering, Procurement, Construction, and Commissioning (EPCC) firms as Malaysia accelerates its renewable energy development.

“Today marks a significant milestone for Founder Group as we are awarded the conditional Letter of Award for the development of a 100-megawatt solar farm in Tanjung Malim, Malaysia. This project not only reinforces our commitment towards renewable energy initiatives in Malaysia but also aligns with the country’s National Energy Transition Roadmap, which aims to scale up renewable energy capacity. Our collaboration with Hexatoff Group, a recognized leader in infrastructure solutions, underscores our dedication to driving innovation and sustainability in the energy sector while contributing to Malaysia’s aspirations as a hub for advanced AI and digital infrastructure,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited.

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/.

About Hexatoff Group Sdn. Bhd.

Hexatoff Group Sdn. Bhd. is a leading turnkey solution provider specializing in the construction of infrastructure and buildings in Malaysia. The company is registered with the Ministry of Finance Malaysia and holds the highest-grade construction license (G7), signifying its capability to undertake large-scale projects.

Founded in 2015, Hexatoff Group combines innovative construction methods with over 20 years of collective industry expertise to deliver excellence and reliability in every project. Its portfolio includes notable developments such as Aster Residence, Salak South Residential Development, and Twinz Condominium, collectively valued at over RM200 million in contract awards.

Committed to innovation, sustainability, and quality, Hexatoff Group continues to leave a transformative impact on Malaysia’s urban and industrial landscapes, building a legacy of trust and excellence.

For more information on the Company, please log on to https://hexatoffgroup.com/.

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

FAQ

What is the value of Founder Group's (FGL) new solar farm contract in Malaysia?

Founder Group (FGL) secured a conditional Letter of Award worth approximately US$68 million (RM299,260,000) for the 100MW solar farm project in Tanjung Malim, Malaysia.

What is the size and capacity of Founder Group's (FGL) new solar farm project?

The solar farm project spans 900 acres and will have a 100-megawatt export capacity to power an AI data center in Enstek City, Malaysia.

What is the projected growth rate of Malaysia's solar EPCC services industry by 2026?

Malaysia's solar EPCC services industry is projected to reach US$350 million by 2026, growing at a compound annual growth rate (CAGR) of 23.5%.