KUALA LUMPUR (Feb 5): Sunview Group Bhd (KL:SUNVIEW) has proposed a diversification of its principal activities to include solar power generation, a sector it expects to account for over 25% of its future net profit.

The diversification is intended to facilitate its acquisition of two 50-megawatt large-scale solar plants, which is expected to lift its power generation segment’s contribution to more than 25% of group profit before tax in FY2026.

The move, Sunview said, will reduce its reliance on the engineering, procurement, construction and commissioning (EPCC) business and provide more stable and recurring revenue.

The solar EPCC specialist's is acquiring a 50MWac solar photovoltaic plant in Pekan, Pahang for RM70 million cash from PKNP Power Suria Sdn Bhd — a subsidiary of Reneuco Bhd. The plant was about 79% complete at the time of the deal.

It is also acquiring the entire equity interest in JAKS Solar Nibong Tebal Sdn Bhd (JSNT) for RM15 million in cash, together with the settlement of shareholders’ advances capped at RM40 million. JSNT owns a 50MWac solar PV power plant in Penang, which it developed under the Large Scale Solar 4 programme.

It will convene an extraordinary general meeting to seek shareholders' approval for the diversification.

Hong Leong Investment Bank is the principal adviser for the exercise.

AskEdge showed that the group is currently trading at a price-earnings ratio of 42.5 times, higher than its sector peers such as Solarvest Holdings Bhd (KL:SLVEST) (33x) and Samaiden Group Bhd (KL:SAMAIDEN)(24.4x) times.

On Thursday, Sunview’s share price closed unchanged at 34.5 sen, giving the group a market capitalisation of RM196 million. Over the past one year, the stock has fallen 20%.