Sunpower Group (SPWG SP): New chapter unfolding; ex-div date next week
- RE-ITERATE BUY Entry – 0.96 Target – 1.10 Stop Loss – 0.90
- Update: The company will be paying out a S$0.1406 special dividend. The ex-dividend date will be Wednesday, 9 June 2021.
- On 31 December 2020, Sunpower announced the divestment of its Manufacturing and Services Business Segment (M&S), leaving it with the Green Investment (GI) business.
- Good start to the year. 1Q21 revenue grew by 31% YoY and PATMI rose by 17% YoY, in line with our expectations mainly due to the contribution from the Shantou Phase 1 project. China’s export of goods and services surged as it was one of the few countries which maintained normalised production activities. China’s economic recovery outperformed the rest of the region during this period as other developing countries in South and Southeast Asia experienced rising Covid-19 cases.
- Maintain Outperform with higher TP. We have a trading target price of S$1.10 vs our fundamental target price of S$1.53 (ex-dividend target price S$1.29). Our fundamental target price is based on each project’s discounted cash flows and excludes the M&S segment which was divested. Read our full report here.