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.

The research firm maintained its "Sell" call on Sunview after its nine-month net profit of RM1.2 million came in below AmInvest's RM4.1 million forecast for the financial year ending Sept 30, 2026 (FY26).

"The company disappointed as an increase in operating expenses squeezed its earnings before interest and tax (Ebit) margins," it said in a note.

Following the weaker-than-expected results, AmInvest slashed its FY26 net profit forecast by 36.6 per cent and FY27 forecast by 32.9 per cent to account for weaker Ebit margins.

Apart from higher professional fees, AmInvest said Sunview was likely affected by higher solar panel costs.

It noted that solar panel prices had risen to US$0.12 per kilowatt-hour (kWh) this year from US$0.08 per kWh last year.

Despite the margin pressure, Sunview's revenue surged 65.7 per cent quarter-on-quarter to RM104.8 million in the third quarter of FY26.

AmInvest expects progress billings to accelerate as the company begins construction work on its large-scale utility contracts.

However, it said high interest and operating expenses were expected to continue eroding Sunview's profit margins.

The company's net gearing rose to 190.4 per cent as at end-June 2026 from 120.2 per cent at end-March.