AmInvest cuts Sunview target price to 20 sen, keeps 'Sell' call
KUALA LUMPUR: AmInvestment Bank Bhd (AmInvest) has cut its target price for Sunview Group Bhd to 20 sen from 29 sen as higher interest and operating expenses are expected to continue squeezing the solar energy company's profit margins.
AmInvest has lowered its target price for Sunview Group Bhd to 20 sen, down from 29 sen, due to rising interest and operating expenses that are expected to reduce the solar energy company's profit margins. The investment bank retained its Sell rating for Sunview after its actual nine-month net profit of RM1.2 million fell short of the RM4.1 million forecast it had predicted for the year ending Sept 30, 2026.
Sunview's disappointing results stemmed from higher operating expenses that narrowed its earnings before interest and tax (EBIT) margins. AmInvest revised its FY26 net profit forecast down by 36.6% and FY27 forecast down by 32.9% to reflect the impact of weaker EBIT margins. In addition to increased professional fees, Sunview likely faced higher solar panel costs, with prices surging to US$0.12 per kilowatt-hour this year from US$0.08 per kWh the previous year.
Even with a 65.7% surge in revenue to RM104.8 million in the third quarter of FY26, Sunview's profit margins are anticipated to be eroded further by high interest and operating expenses. As of the end of June 2026, the company's net gearing had climbed to 190.4% from 120.2% at the end of March.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
