KUALA LUMPUR (June 14): Shares in renewable energy player Sunview Group Bhd (KL:SUNVIEW) surged as much as 8.8% in morning trade on Friday to reach their highest in eight months, following an announcement on Thursday that the company won two solar energy projects in Uzbekistan.
Sunview shares reached an intraday high of 80.5 sen, their highest since Oct 13, 2023. The stock was trading at 77.5 sen at 11.14am, valuing the company at RM391 million on Bursa Malaysia. A total of 24.96 million shares were traded.
However, the counter was down by a marginal 1.3% since the beginning of this year to close at 74 sen on Thursday. There are two 'buy' calls from research houses, with a 12-month target price of 91 sen apiece, representing an upside potential of 23% over Thursday's closing price.
“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,” MIDF Research said in a note on Friday.
Due to the massive nature of both projects and asset ownership requirements, the local research firm expects Sunview to engage with partners in Uzbekistan once it inks the 25-year power purchase agreement in two months. 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, MIDF Research added.
The company announced on Thursday that its wholly owned unit Fabulous Sunview Sdn Bhd had signed a development and cooperation agreement with Uzbekistan’s Ministry of Energy to undertake the projects.
While the value of the two projects was not disclosed, Sunview group executive director and group chief executive officer HP Ong said the projects will provide financial feasibility to the company in the coming years, supported by a favourable tariff for solar photovoltaic (PV) plants and battery energy storage systems.
“By increasing the contribution of renewables, our projects will not only contribute to a stable energy supply, but also reduce the nation's carbon footprint,” Ong said.
Last Friday, the ACE-Market listed company also 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.
The contract is expected to contribute positively to the group’s future earnings for the duration of the project, which is scheduled to be completed by June 2025.