PETALING JAYA: Sunview Group Bhd
’s recent RM289.71mil project is a timely win that will strengthen the group’s order book, according to MBSB Research.
The group’s unbilled order book with the latest contract stood at RM366.2mil after Sunview secured a solar photovoltaic (PV) project in Sungai Likau, Bintulu, from Malakoff Evergreen Sdn Bhd.
Malakoff Evergreen is a 70%-owned subsidiary of Tuah Utama Sdn Bhd, which is wholly-owned by Malakoff Corp Bhd.
MBSB Research also noted its expectations for the group’s future replenishment prospects to come from large scale solar (LSS5+) programme in Malaysia on top of ongoing rooftop solar jobs.
While Sunview had proposed a diversification in its principal business to include solar power generation anticipated to enhance stronger earnings prospects, however, MBSB Research said the company’s core expertise in solar engineering, procurement, construction and commissioning (EPCC) remained integral to business growth.
Notably, Sunview said the project is expected to contribute positively towards its future earnings and its subsidiaries for the duration of the project, barring any unforeseen circumstances.
Analysts reported that just a week after announcing its quarterly earnings underperformed, Sunview secured the solar PV plant project from Malakoff Evergreen.
“While Sunview did not provide the specifications of the project, we believe this is a 100MW solar PV facility, going by past news reports,” MBSB Research pointed out.
The research house said Malakoff Evergreen entered into a 30-year power purchase agreement with Sesco in October 2025 scheduled to begin in 2028.
“The RM289.7mil EPCC contract awarded to Sunview is a fixed contract sum, which may pose margin risks to the group considering the recent cancellation of export value-added tax rebates on solar PV products from China, which may see an increase in solar module prices,” MBSB Research said.
Additionally, the research house maintained its “sell” call on Sunview with an unchanged target price of 30 sen.
The target price is maintained based on Sunview’s expected financial year 2027 earnings per share of 1.5 sen, using a 20 times price-to-earnings ratio, below the multiple of its larger peers.
The research house said its standpoint was attributed to Sunview’s earnings results that fell short of analysts’ expectations.
“While we are positive on the renewable energy subsector, especially the solar EPCC players that are expected to benefit from the various schemes and policies and the longer-term National Energy Transition Roadmap, we believe compressed margins from fixed-sum contracts could weigh on profitability,” it said.
