Company Background. Sunview Group (Sunview) is a prominent renewable energy (RE) player principally involved in the provision of engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) facilities. The facilities are for industrial, commercial/residential buildings, solar PV installation services and solar power generation/supply. Sunview is registered under Sustainable Energy Development Authority Malaysia as a solar service provider and solar PV investor.  

Prospects. (i) Focus on delivering the group’s outstanding order book of RM548mil (as at 31 Mar 2023) and continue leveraging its core competency in the RE space to secure new contracts, (ii) Participating in tender processes for government-driven programmes such as the virtual power purchase agreement under the Corporate Green Power Programme, and (iii) With the uplifting of the RE export ban and execution of RE cross-border trading via electricity exchange system, this will provide the group with opportunities to provide EPCC services to solar PV systems and exploring into other RE opportunities.  

Financial Performance. In 4QFY23, Sunview posted a higher revenue of RM140mil (+44% QoQ) with a PAT of RM5.6mil (+2.4x QoQ). This was mainly driven by the recognition of revenue from the progress of the on-going large scale solar (LSS) and EPCC projects as well as lower administrative expenses.  

Technical Analysis. Sunview may trend higher after it surged to a new all-time high and closed above the RM0.93 resistance a few sessions ago. In view of the uncovered upside gap formed on 23 Jun and together with rising EMAs, the upward momentum is likely to pick up further. A bullish bias may emerge above the RM0.93 level, with stop-loss set at RM0.83, below the 50-day EMA. Towards the upside, near-term resistance level is seen at RM1.00, followed by RM1.10.

Source: AmInvest Research - 17 Jul 2023