KUALA LUMPUR - VCI Global Limited (NASDAQ: VCIG), a diversified holding company currently valued at $17.66 million, announced plans to develop and acquire solar photovoltaic (PV) projects with a total capacity of up to 100 megawatts (MW) across Southeast Asia and Europe. The five-year initiative is expected to generate around US$200 million in revenue over two decades, according to a press release statement. InvestingPro data shows the company maintains impressive gross profit margins of 70.86% and has demonstrated strong revenue growth of 89.38% over the last twelve months.
The company aims to source at least 70% of the solar capacity from Malaysia, capitalizing on the Corporate Renewable Energy Supply Scheme (CRESS), which allows businesses to directly purchase renewable energy. By supplying green electricity to its data centers, VCI Global aims to enhance energy independence and advance its sustainability goals. According to InvestingPro analysis, the company maintains a healthy financial position with a current ratio of 5.58, indicating strong ability to fund its expansion plans. InvestingPro subscribers have access to 15 additional key insights about VCIG's financial health and growth potential.
In line with its strategic vision, VCI Global also intends to acquire solar farms in Eastern and Southeastern Europe, targeting 30 MW of capacity. The international expansion is part of the company's strategy to meet the increasing global demand for clean energy and strengthen its renewable energy portfolio.
The total investment for these solar projects is projected to be US$50 million over the next five years, with an anticipated annual revenue of approximately US$10 million over the next 20 years. This investment aligns with VCI Global's commitment to clean energy and shareholder value.
Solar Insure projects that by 2030, data centers could account for 16% of total U.S. power consumption, up from 2.5% a decade ago, underscoring the importance of alternative energy sources like solar power. With the growth of AI technology, the demand for power has surged, positioning solar energy as a key solution.
VCI Global's Group Executive Chairman and CEO, Dato’ Victor Hoo, stated, "We view solar energy as one of the most promising renewable energy sources and wish to fully capitalize on this opportunity to meet the growing clean energy demand of AI and the world."
The company, headquartered in Kuala Lumpur, operates in various sectors including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, with a presence across the Asia-Pacific region, the United States, Europe, and the Middle East.
The press release also contains forward-looking statements subject to risks and uncertainties. These include the company's ability to achieve its ambitious growth plans and the impact of external factors such as economic conditions and the COVID-19 pandemic. While the stock has experienced significant volatility, trading at $1.61, InvestingPro's Fair Value analysis suggests the stock is currently undervalued. Detailed valuation metrics and comprehensive analysis are available in the Pro Research Report, part of the extensive coverage available for over 1,400 US equities on InvestingPro.
In other recent news, VCI Global Limited has been making significant strides in its financial performance and business operations. The company recently secured a $24 million contract to provide AI hardware and software for a data center project in Malaysia, awarded by Hexatoff Group Sdn. Bhd. In addition, VCI Global's subsidiary, V-Gallant, won a $16 million contract to build an AI-enabled live streaming platform for a Malaysian e-commerce company.
The company also announced the appointment of Victor Lee as its new executive director, bringing his 28 years of experience in the private equity sector to the company. These developments are part of VCI Global's ongoing growth and transformation journey.
Furthermore, VCI Global concluded its At-The-Market equity offering program, managed by H.C. Wainwright & Co., raising approximately $1.77 million. This termination is expected to pave the way for the company to explore more advantageous financing alternatives aligned with its strategic growth plans.
VCI Global also secured an $18 million contract to list four Malaysian companies on the Nasdaq stock exchange, a deal expected to generate revenues of $18 million over the next 14 months. The company has also completed a secondary listing on the Frankfurt Stock Exchange and announced a $10 million share buyback program.
Finally, through its subsidiary V Gallant Sdn Bhd, VCI Global is now offering advanced AI computing solutions, integrating NVIDIA (NASDAQ:NVDA) H200 Tensor Core GPUs and AI software to enhance operational efficiency. These are the latest developments in VCI Global's ongoing growth and transformation journey.
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