Founder Group Shares Plunge 12.52% as Renewable Energy Risks and Policy Shifts Spur Skepticism

Founder Group (FGL) shares plummeted 12.52% on Friday, marking a fourth consecutive day of declines and a cumulative drop of 25.05% over four days. The stock hit an intraday low with a 20.00% plunge, signaling renewed investor skepticism amid ongoing operational and strategic challenges. The selloff reflects a broader reassessment of the firm’s high-risk renewable energy initiatives and financial performance.

Recent volatility has been driven by the company’s aggressive expansion into Malaysia’s renewable energy sector, including a RM1.16 billion solar-plus-storage facility and RM17.4 billion in solar EPCC contracts. While these projects align with global green energy trends, analysts highlight execution risks and high capital intensity. Investors remain unconvinced about the firm’s ability to translate ambitious plans into near-term profitability, particularly amid a 39% year-over-year revenue decline and a price-to-sales ratio of 0.8x, well below industry peers.

Broader sector headwinds further weigh on sentiment. Policy shifts in Malaysia, supply chain disruptions, and unproven scalability of emerging technologies like AI-powered solar farm inspections have compounded concerns. Regulatory delays in project approvals and rising operational costs add to execution risks. Strategic partnerships, including a USD 220 million renewable energy MoU, are seen as critical but remain untested in delivering consistent returns.

Market dynamics also play a role. Founder Group’s stock has underperformed relative to industry growth forecasts, with a P/S ratio and revenue trajectory that diverge sharply from sector expectations. While a 33% rebound over 30 days suggests some optimism about infrastructure and AI-driven pivots, the stock remains volatile. Investors are awaiting concrete evidence of project delivery and improved financial metrics to restore confidence in the firm’s long-term viability.