Sunview shining bright, spotlight on new jobs in Europe

Sunview Group Bhd may have lost some ground in terms of share price in the past year, down 18% to close at 74 sen on June 28. But the renewable energy company is still trading 2.6 times above its IPO price of 29 sen.

The counter was at a 52-week high of 98 sen last July but fell to a low of 60 sen in November last year. The concern most investors have is probably its financial performance.

When it was first listed in 2022, revenue for the first quarter ended June 30 was RM31.5 million, posted a net profit RM1.8mil. Whereas in the fourth quarter ended Mar 31, 2024, its revenue was much higher than in 2022, at RM103.2 million but unfortunately, made only RM4.6 million.

But the counter is slowing making its upward movement in the past one month, rising 14.6%. Technical indicators are encouraging, expecting the stock to challenge its resistance at 88.5 sen.

What is also encouraging is its ability to secure RE related projects overseas. On June 14, the RE player rose as much as 8.8% to reach its highest in eight months, following an announcement that the company won two solar energy projects in Uzbekistan.

The two new solar projects that it secured in Uzbekistan are expected to deliver strong results to the group over the next three financial years (ending March 31, 2025 to 2027), on top of boosting its profile in undertaking overseas projects. Capital expenditure for the two projects is expected to be around RM2 billion.

Sunview will set up special purpose vehicles in Uzbekistan to implement the projects. The value of the two projects was not disclosed, but Sunview said the projects will provide financial feasibility to the company in the coming years. This will be supported by a favourable tariff for solar photovoltaic (PV) plants and battery energy storage systems.

The ACE-Market listed company also recently secured a RM51.9 million contract from Cenergi Solar Kuala Ketil Sdn Bhd to build a 44.99 megawatt-peak (MWp) solar PV plant in Kedah. Not long after the Uzbekistan job, Sunview has secured a RM79.5 million engineering, procurement, construction and commissioning (EPCC) contract from Bulgaria-based OKOP Solar EOOD.

The renewable energy (RE) player said under the agreement, Sunview will be an EPCC provider of a 20MW(ac) solar photovoltaic power plant (PVPP) in Bulgaria. It appears Sunview has the ingredients to capture a significant part of the LSS job in Europe and will probably see more contracts coming its way.