Sunview Group Berhad (Sunview) has been appointed to collaborate with the Ministry of Energy in Uzbekistan for two solar energy projects there. The groups wholly owned subsidiary Fabulous Sunview Sdn Bhd entered into a development and cooperation agreement with the ministry for two solar energy projects, where Sunview will handle the EPCC of the solar farms and act as the investor, asset owner and RE electricity producer.
The signing ceremony yesterday was witnessed by Uzbekistan’s Deputy Minister of Energy, Umid Mamadaminov.
MIDF Research said today (June 14), the first project is a 400MWac large scale solar photovoltaic (PV) plant with a 100MW/200MWh battery energy storage system (BESS) in the Andijan district (Andijan Project) while the second project is a 200MWac large scale solar PV plant with a 50MW/100MWh BESS in the Fergana District (Fergana Project). Capex for both projects is expected to be circa RM2.0b.
MIDF maintains their earnings estimates for now pending further details on both projects, and to the TP for Sunview at RM0.88, along with a BUY call.
Due to the massive nature of both projects and asset ownership requirements, MIDF expects Sunview to engage partners in Uzbekistan. Management has yet to indicate the EPCC and asset ownership stakes it would take on but MIDF expects more updates once it inks the 25-year power purchase agreement (PPA) in two months. Sunview will set up special purpose vehicles (SPVs) in Uzbekistan for the implementation of each project.
MIDF has indicated that Sunview will need to raise funds for the investment in Uzbekistan, likely from both placements and a green sukuk that management is planning to raise.
Both projects will take two years to complete, and MIDF expects them to provide strong contributions to Sunview’s earnings from FY25 to FY27 and a steady recurring income after that from power generation.
MIDF reiterated their view that Sunview has reached an inflection point in 3QFY24 with compressed margins as its LSS4 projects are now at the tail end. 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, on top of boosting its profile in undertaking overseas projects.
In Malaysia, MIDF said, Sunview’s prospects remain bright with favourable policies such as the CGPP, National Energy Transition Roadmap (NETR) and the LSS5.
