KEY INVESTMENT HIGHLIGHTS

• Two new CGPP contracts worth RM196.1m to be built in Sungai Petani
• Outstanding order book rises to RM441m; earnings visibility up to FY26
• Actively tendering for projects with a tender book of RM1.8b
• Maintain BUY with an unchanged TP of RM0.64

Secures 2 more CGPP jobs. It is set to be a bright finish in 2024 after Sunview, through its wholly owned subsidiary Fabulous Sunview Sdn Bhd secured two Corporate Green Power Programme (CGPP) contracts worth RM196.1m for two 29.99MWac ground mounted solar PV facilities in Sungai Petani, Kedah. The contracts secured were from Dayasinar Energy Sdn Bhd (RM98.3m) and Solarscape Energy Sdn Bhd (RM97.8m).

Details of the jobs. The contracts require Sunview to undertake the design, procurement, erection, connection, commissioning and testing as well as supply of equipment for the solar PV generation facilities. The contract prices are fixed lump sums.

RM300m of CGPP tenders remaining. Following these two latest contracts, we estimate that Sunview has at least RM300m more of CGPP tenders. As CGPP solar farms have to be completed no later than 2025 unless approved by the Energy Commission, we expect more announcements in this space towards end-2024 and in Jan-25. Sunview's first CGPP contract was a RM51.9m package that it secured from Cenergi Solar Kuala Ketil Sdn Bhd in Sep-24. This is a free issue contract where the client will provide solar panels, mounting structures and inverter. Sunview's role is mainly for the installation and procurement of other items such as interconnection equipment and cables.

Outstanding order book. The group's outstanding order book now rises to RM440.7m, with strong earnings visibility up to FY26. Out of this, RM248m or 56.3% are CGPP related jobs.

Actively tendering for projects. Other than the CGPP, Sunview is also actively participating in tenders, with a total tender book value of RM2.4b, including CGPP. This comprises RM1.8b of LSS5 tenders and RM116m of rooftop projects. We expect CGPP-related contracts to deliver an immediate boost to the group's outstanding order book of RM244.6m currently. Management is also optimistic on solar rooftop projects moving forward. About half of Sunview's 1HFY25 revenue of RM88.0m came from commercial and industrial (C&I) rooftop projects.

Earnings estimates. We are maintaining our earnings estimates.

Target price. We are also keeping to our TP of RM0.64 as we peg Sunview's FY26F EPS of 2.8 sen to a forward PER of 23x, at a slight discount to its larger peers.

Maintain BUY. We expect Sunview's prospects moving forward to be driven by the rising demand for rooftop solar, EPCC projects from CGPP and the upcoming 2GW LSS5. Prospects for solar EPCC players remains bright, with favourable policies such as the National Energy Transition Roadmap (NETR) and the recent announcement under Budget 2025 with an allocation of over RM300m for the National Energy Transition Facility Fund, up from RM100m in 2024 to fuel additional green energy projects. All factors considered; we maintain our BUY recommendation on Sunview.

Source: MIDF Research - 11 Dec 2024