KUALA LUMPUR (Nov 26): Solarvest Holdings Bhd's share price rose as much as 39 sen or 111% to 74 sen in morning trades today on the solar photovoltaic (PV) company's first trading day on Bursa Malaysia's ACE Market.

Solarvest shares had earlier opened at 60 sen. At 10:10am, the counter pared gains at 66 sen with some 138 million shares traded. Solarvest was Bursa's top-active stock and leading gainer.

Yesterday, Kenanga Investment Bank Bhd analyst Teh Kian Yeong wrote in a note that Kenanga projects Solarvest to register more than 20% annual earnings growth for the next two years on orderbook of RM184.5 million.

Solarvest's financial year ends in March.

"Once listed, it will be the only 'pure solar PV' player in the local bourse. At [an] IPO price of 35 sen, which is valued at historical FY19 PER (price-earnings ratio) of 12.3x, it is fairly [valued] within the range of utility sector's valuation of 13x.

"However, for a small company seeking listing, the offer is not attractive enough. We believe the stock should be valued at prospective FY21 PER of 10x, which is similar to utilities EPCC (engineering, procurement, construction and commissioning) contractor Pestech International Bhd's current price valuation of 9.8x PER. As such, Solarvest is fairly valued at 43 sen," Teh said.