Sunview Group Bhd CEO Ong Hang Ping
KUALA LUMPUR: The rise of environmental, social, and governance (ESG) and government initiatives have made the renewable energy (RE) sector relevant, according to Sunview Group Bhd
.
Executive director and chief executive officer Ong Hang Ping said the extension of the tax incentives to 2025, allocation and redistribution of an RE quota of 1,200 megawatt for solar resources in the International Sustainable Energy Summit would support the sector.
“The incentives, along with other factors like ESG, have helped to boost market awareness on RE,” Ong said at the listing ceremony of the company yesterday.
Sunview’s earnings are mainly derived from the provision of engineering, procurement, construction, and commissioning (EPCC) for the commercial and industrial sectors.
“Cost optimisation is our forte and our strengths lie in the engineering and design of solar photovoltaic (PV) facilities. Hence, such a proven track record has enabled us to sustain our earnings even during the pandemic,” said Ong.
Sunview debuted on the ACE Market of Bursa Malaysia at 59.5 sen, offering a premium of 30.5 sen, or 105% above its initial public offering price of 29 sen a share.
The company’s shares were oversubscribed by 63.19 times.
The stock was the most actively traded counter on the stock exchange yesterday with 127, 57 million shares changing hands.
It closed its maiden trading day up 17 sen at 46 sen a share after hitting a high of 61 sen and low of 44 sen during intraday trade.
The company is principally involved in EPCC as well as construction and installation services of solar photovoltaic (PV) facilities.
It raised RM34.22mil through the listing exercise with RM20.1mil or 58.7% of the proceeds to be used as working capital while RM7mil or 20.5% is earmarked for the repayment of bank borrowings.
A total of RM1.86mil or 5.4% is set aside for capital expenditure while RM1.67mil or 4.9% will be allocated for business expansion.
The remaining RM3.6mil or 10.5% will be used to defray listing expenses.
Ong added the group has plans to increase its current PV installation market share of 4% to more than 10% next year.
Meanwhile, Rakuten Trade said Sunview is expected to see multi-year growth in the quarters ahead owing to the group’s unbilled order book, job wins, and expansion plans.
“Sunview has an unbilled order book of RM558.3mil as of Aug 30, which provides great earnings visibility over the next two years,” it said in a report yesterday.
Apart from its plans to build two new solar PV facilities in Klang, Selangor, Sunview is also actively tendering for new developments that will see an order book replenishment between RM150mil and RM200mil per annum.
The new facilities in Klang will have a total planned capacity of 0.38 megawatt peak which is scheduled to commence operations in the first quarter of 2023.
“Leveraging on its current expertise, Sunview is also expanding into other RE facilities and complementary products namely biogas plants which are designed to generate electricity by using agricultural waste,” the research house said.
Rakuten Trade ascribed a “buy” call on Sunview with a target price of 50 sen based on a 15 times price-to-earnings ratio.
“We forecast Sunview to register net earnings of RM15.7mil and RM19.3mil for financial year 2023 (FY23) and FY24, representing 77% and 23% growth respectively,” said Rakuten Trade.
