MIDF Amanah Investment Bank Bhd (MIDF Research) has maintained its BUY recommendation on Sunview Group Berhad, with an unchanged target price of RM0.64. According to the research house, the group's prospects are expected to be significantly boosted by upcoming renewable energy projects, including the Corporate Green Power Programme (CGPP) and the Large-Scale Solar (LSS5) initiatives, which are forecasted to drive stronger performance in FY26.

MIDF Research noted that the CGPP, which requires solar farms to be completed by 2025, offers abundant opportunities for order book growth. Sunview has already secured an RM51.9 million contract under the CGPP and is actively participating in tenders for more projects. The company's total tender book is valued at RM2.4 billion, comprising RM1.8 billion in LSS5 tenders and RM116 million in rooftop solar projects. The house expects these contracts to provide a significant boost to Sunview's outstanding order book, which currently stands at RM244.6 million.

The research house also highlighted that Sunview's focus on commercial and industrial rooftop solar projects has been a key revenue driver, contributing approximately 50% of its revenue in the first half of FY25, totalling RM88 million. This trend is expected to continue as the demand for renewable energy solutions in the commercial sector remains strong. The group's strategy aligns with Malaysia's National Energy Transition Roadmap (NETR) and recent budget allocations, which are designed to support the growth of green energy projects.

Additionally, MIDF Research reported that Sunview is progressing with its international expansion. The company is in negotiations for power purchase agreements (PPAs) for the development of two 600MW solar photovoltaic plants in Uzbekistan. The house stated that Sunview aims to finalise the PPAs, as well as land lease and transmission agreements, by January 2025. The establishment of Sunview Centraziya LLC in Uzbekistan is expected to facilitate its operations in the region.

MIDF Research also noted that the group's outlook remains promising, thanks to the government's supportive policies and the growing demand for solar energy solutions. The house has kept its earnings estimates unchanged, projecting core net profit to rise to RM16.7 million in FY26 from RM10.5 million in FY25. The target price of RM0.64 is based on a forward price-to-earnings ratio of 23 times, which the analysts believe reflects Sunview's potential to deliver strong returns.