PETALING JAYA: Sunview Group Bhd
’s balance sheet reset remains on track, according to TA Research, as the solar engineering, procurement, construction, and commissioning (EPCC) player continues to pare down borrowings and shore up funding for its expanding renewable energy pipeline.
In its latest update, Sunview announced that it will not proceed with its proposed disposal mandate.
TA Research noted that nevertheless, this is merely due to technicalities and that the group is still looking to divest its stake in Winstar Capital Bhd, albeit to various prospective purchasers, and will make the necessary announcements or seek shareholders’ approval in accordance with the ACE Market Listing Requirements of Bursa Malaysia.
“To recap, Sunview was seeking shareholders’ mandate to dispose of its entire 22.4% stake in Winstar for a minimum price of 43 sen per share (13 times its financial year 2025 (FY25) actual price-to-earnings ratio; 1.1 times FY25 actual price-to-book value).
“Additionally, the exercise would allow Sunview to realise its investment in Winstar and redeploy the estimated RM30.1mil proceeds into its solar EPCC business as well as to pare down borrowings (FY25 actual net gearing: 1.26 times).”
Separately, Sunview has completed the issuance of the second tranche of its private placement.
Inclusive of the first tranche, the group has so far raised RM9.6mil from the exercise, which reduces the group’s net gearing from 1.26 times (FY25 actual) to an estimated 1.06 times.
“We estimate a remaining 26.9 million shares that can be issued under the private placement exercise, which could raise a further RM8mil to RM9mil depending on the issue price,” TA Research said.
Sunview is in the middle of acquiring two fourth cycle of the large scale solar programme solar assets with aggregate capacity of 100 megawatt (MW), which are targeted to be completed by the end of the second quarter of financial year 2026.
“Furthermore, we estimate the immediate funding requirement for these acquisitions at RM125mil, which could rise to between RM175mil to RM245mil, inclusive of additional costs required to complete one of the solar assets being acquired.
“Besides the acquisitions, Sunview recently landed a RM1.96bil EPCC contract to construct Tenaga Nasional Bhd’s 595MW alternating current floating solar PV plant in Kenyir, Terengganu, through a 40:60 joint venture with Cypark Resources Bhd.
“Nevertheless, with Tenaga being the end client and a strong paymaster, seeking credit lines to fund the project’s working capital requirement should not be too challenging, in our opinion,” it said.
TA Research maintained a “hold” call on Sunview with a target price of 39.5 sen.
The research house said the potential disposal of Winstar and the completion of the private placement exercise could ultimately reduce Sunview’s net gearing to an estimated 0.7 times to 0.8 times from 1.26 times currently, placing the group on a much stronger footing to undertake future EPCC projects and solar asset investments.
