Founder Group Ltd (NASDAQ: FGL)

Founder Group is a dedicated solar solutions provider in Malaysia, offering end to end services for commercial and industrial sectors as well as large scale solar power projects, encompassing project design, engineering, procurement, construction, installation, integration and commissioning. The company focuses on delivering turnkey solutions that connect to the national grid, ensuring performance and reliability for utility scale installations and rooftop systems on factories, warehouses and commercial buildings. It also provides limited operation and maintenance support to keep plants operating at optimal capacity.

The company generates revenue primarily by providing engineering, procurement, construction, and commissioning (EPCC) services for utility scale solar projects and for commercial and industrial rooftop installations; it also derives minimal income from operation and maintenance activities. In the fiscal year 2023, total revenue was RM148,053,973, of which large scale solar contributed RM131,988,574 (89%) and C&I contributed RM16,065,399 (11%). In 2024, total revenue fell to RM90,344,588, with large scale solar providing RM68,864,991 (76%) and C&I providing RM21,479,597 (24%). In 2025, revenue rose to RM120,697,610, comprising RM73,706,601 (61%) from large scale solar and RM46,991,009 (39%) from C&I.

The company operates through the following segments, which are defined by project scale rather than geography: large scale solar project services and commercial and industrial project services.

• Large scale Solar Project Services: This segment delivers EPCC for utility scale solar PV power plants with an installed capacity of 1 MWac or more, handling design, engineering, procurement, construction, installation, grid interconnection, and commissioning, and providing performance warranties during the defect liability period.

• C&I Project Services: This segment supplies EPCC for smaller rooftop solar systems on commercial and industrial facilities, managing design, engineering, procurement, construction, installation, and commissioning, and offering performance warranties for the systems that serve on site consumption with any excess exported to the grid.

Founder Group holds a competitive position in Malaysia’s solar market, distinguished by a track record of over 700 MWp delivered since 2021, strong relationships with equipment suppliers, subcontractors, and financial institutions, and a multidisciplinary design engineering team that supports on time, high quality project execution. The company’s ability to offer credit terms of up to 90 days, longer than the typical seven day terms offered by many peers, enhances its appeal to customers. While it faces competition from other local and international EPCC providers, its focus on quality, reliable delivery and comprehensive service offerings helps differentiate it in a rapidly evolving industry.

The company’s customer base consists of project owners, such as developers or owners of solar assets, and project awarders, which are main contractors that subcontract work to third parties. Notable customers include Customer I, Customer III, Customer IV, Customer V, Customer VI, Customer VII, and Customer VIII, which have individually represented significant shares of revenue in recent years, for example, Customer I accounted for 29.88% of total revenue in 2023, Customer V for 23.25% in 2024, and Customer VII for 28.47% in 2025. Although these relationships are important, the company notes that it is not dependent on any single customer because solar projects are typically non recurring, and it continues to pursue a diversified pipeline of new opportunities.