Founder Group signs MOU with GCL for renewable energy projects

KUALA LUMPUR - Founder Group Limited (NASDAQ:FGL), a small-cap renewable energy company with a market capitalization of $17.67 million and trailing twelve-month revenue of $20.2 million, announced Tuesday it has signed a memorandum of understanding with GCL Systems Integration Technology Co. Ltd. to explore renewable energy projects across Malaysia and other ASEAN countries with an estimated value of up to $220 million. According to InvestingPro data, the company has seen challenging times with a 71.2% decline in stock price over the past year.

Under the agreement, the companies will exchange information, implement specific actions, and periodically evaluate their collaboration effectiveness. Both firms will contribute technical expertise to support joint projects in the renewable energy sector.

The collaboration will focus on identifying and developing solar photovoltaic and energy storage projects. If any projects are secured, the companies will execute separate definitive agreements outlining specific commitments.

"Leveraging GCL’s strong global reputation and expertise in manufacturing and supply of solar PV modules and storage will be an integral part of this cooperation," said Lee Seng Chi, Chief Executive Officer of Founder Group Limited, in the press release statement.

Founder Group operates as an engineering, procurement, construction, and commissioning solutions provider for solar photovoltaic systems in Malaysia, focusing on large-scale solar projects and commercial and industrial solar installations.

GCL Systems Integration Technology, listed on the Shenzhen Stock Exchange, has been operating since 2003 and provides PV modules, energy storage systems, and related services.

The companies will utilize internal resources to source potential projects, analyze tender documents, prepare business plans, and develop proposals, according to the announcement.

In other recent news, Founder Group Limited has secured a $2.6 million contract for a solar project in Malaysia. The company will handle the design, engineering, procurement, supply, delivery, construction, and commissioning of a rooftop solar photovoltaic facility. This project is expected to be completed within two years, after which Founder Group will enter into an Operations and Maintenance agreement anticipated to last 15 to 21 years. The partnership is with a leading solar installation company in Malaysia, marking a continuation of previous collaborations. Founder Group projects a double-digit profit margin from this venture and expects further agreements in the future. The announcement aligns with Malaysia’s increased renewable energy targets, aiming for 40% capacity by 2035, with solar energy playing a significant role. The project is expected to offer opportunities for recurring revenue and margin growth, potentially enhancing shareholder value. Founder Group’s CEO, Lee Seng Chi, highlighted the shared commitment to supporting Malaysia’s renewable energy goals.

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