BM Greentech Shifts to Solar and BESS, Anticipates Earnings Growth in 4QFY26

Maybank IBG maintains a BUY rating on BM Greentech Bhd (BMG) with a target price of RM2.18, citing expected stronger earnings momentum from FY27E driven by a pivot to solar plus battery energy storage systems (BESS) for the commercial and industrial market. Partnerships with BESS suppliers aim to enhance system integration as project volumes increase. The water-treatment segment is also noted for steady growth, along with a biomass project bid under the government's Feed-in Tariff 2.0.

Published Mar 23, 2026

BM Greentech Bhd (BMG) is transitioning from rooftop solar to integrated solar plus battery energy storage systems (BESS) targeting the commercial and industrial market. This shift aims to improve earnings momentum from FY27E following slower uptake in 1H CY26 due to longer ROI timelines.

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The new tariff structure from Tenaga Nasional Berhad enhances BESS value through peak shaving. BMG's water-treatment segment is expanding, recently completing a RM15-20 million river-water treatment plant in Johor for data centres.

Additionally, BMG has submitted a bid for an 8MW biomass project under the 300MW Feed-in Tariff 2.0 for 2026, aiming for a project IRR of 10-12%. Maybank IBG maintains its target price at RM2.18.