Founder Group (NASDAQ:FGL) saw its stock climb 20% on Monday following confirmation that it had secured an EPCC - Engineering, Procurement, Construction, and Commissioning - contract valued at about RM16 million (approximately US$4.14 million) to deliver a 25.40MW solar project in Malaysia.
The contract sits within Malaysia's Corporate Green Power Programme (CGPP), a government-supported initiative intended to speed corporate decarbonization by facilitating Virtual Power Purchase Agreements and expanding utility-scale solar capacity. Under the terms of the agreement, Founder Group will be responsible for supply, civil and structural works, testing and commissioning, and providing the interconnection facility for the solar photovoltaic installation.
The company said the completed plant is expected to generate about 53,000 MWh of renewable energy annually. That output would translate into an estimated avoidance of approximately 35,000 tonnes of carbon dioxide emissions each year. In addition, the project is anticipated to deliver roughly 53,000 Renewable Energy Certificates (RECs) to the market, which corporate offtakers can use to support sustainability targets.
"This award reinforces Founder Group's growing role in Malaysia's energy transition and demonstrates our strong execution track record under the CGPP framework," said Lee Seng Chi, Chief Executive Officer of Founder Group. "As Malaysia accelerates its utility-scale solar rollout, Founder Group is well-positioned to capture a larger share of upcoming tenders and expand our presence in high-value EPCC projects."
Founder Group described the contract as strengthening its standing in Malaysia's utility-scale solar sector and said it improves visibility into recurring, multi-year revenue opportunities tied to project delivery and contractual obligations. The company indicated it remains active in pursuing additional opportunities including LSS5 and LSS5+ programmes, the Corporate Renewable Energy Sourcing Scheme, and regional solar tenders.
Market reaction to the announcement was immediate, with the stock gaining 20% on the trading day that followed the contract disclosure. The firm emphasized the contract's role in reinforcing its execution credentials within the CGPP framework and in expanding its pipeline of EPCC work in the region.
While the award highlights a near-term revenue event tied directly to a specified EPCC engagement, Founder Group's commentary also focuses on pipeline development and participation in future tenders that could shape multi-year revenue streams.