MBSB Research maintained its SELL call on Sunview Group Bhd with an unchanged target price of RM0.32, saying the solar engineering, procurement, construction and commissioning (EPCC) player continues to struggle to turn its growing orderbook into meaningful and consistent profits.
Sunview posted core earnings of just RM0.3 million in 3QFY26, down 74.8% quarter-on-quarter, bringing 9MFY26 core earnings to RM1.6 million or only 17.8% of MBSB Research’s full-year forecast.
The weakness came despite a sharp increase in EPCC revenue, which rose 66% quarter-on-quarter to RM103.4 million. The division nevertheless recorded a loss of RM2.3 million, while the power generation segment also remained loss-making at RM1.3 million despite revenue rising 37.5% to RM1.4 million.
MBSB Research said the group was only pushed into profitability by RM3.4 million in profit from its “others” segment.
Sunview’s unbilled orderbook has meanwhile climbed to RM746.4 million, largely driven by its RM1.96 billion EPCC contract for a 595MW floating solar photovoltaic plant with battery energy storage at Kenyir Lake, Terengganu.
The project, secured through a 40:60 joint venture with Cypark Renewable Energy, gives Sunview an estimated RM784.8 million share of the contract. MBSB Research cautioned that this creates relatively high project concentration risk, with completion expected by September 2028.
The analyst retained its FY26 and FY27 earnings forecasts, expecting the Kenyir project to contribute in coming quarters, while maintaining the RM0.32 target price based on 20 times FY27 earnings.
As of 4 pm, the stock price gained 1.37% to RM0.37.
