MIDF Research has expressed optimism about Sunview Group Bhd’s upcoming foray into Uzbekistan, which will see the company not only as an asset owner but also an engineering, procurement, construction, and commissioning (EPCC) contractor.
The research firm has reaffirmed its “buy” rating on the renewable energy company, setting a target price of RM0.88.
According to MIDF Research, the potential entry into Uzbekistan aligns with a promising landscape for solar EPCC players, buoyed by supportive government policies like the Corporate Green Programme (CGPP), National Energy Transition Roadmap, and Large Scale Solar (LSS) projects, both domestically and internationally.
“If all goes according to plan, the group stands to secure ground-mounted solar projects valued at several hundred million US dollars,” MIDF Research stated.
Last month, Sunview Group’s subsidiary, Fabulous Sunview Sdn Bhd, inked a strategic alliance with Yashil Energiya in Samarkand. The agreement designates Sunview Group as an investor and EPCC provider for potential renewable energy projects, with Yashil Energiya serving as the purchaser of generated electricity.
While tariff rates are still under negotiation, Sunview Group’s management is optimistic about the potential outcomes.
To fuel its expansion plans, Sunview Group is exploring fundraising avenues such as placements and sukuk issuances, with discussions underway for a green sukuk. Currently, 30% of the company’s outstanding order book of RM210.9 million comprises commercial and industrial rooftop solar projects, with plans for further expansion into residential rooftop installations.
MIDF Research emphasized the company’s strategic alignment with government initiatives like the Solar for Rakyat Incentive Scheme (Solaris), aimed at promoting solar photovoltaic system installations in homes. Looking ahead to financial year 2025 (FY25), Sunview Group aims to secure five CGPP EPCC contracts, estimated to be worth around RM500 million.
