Financial close on the 255MW Sunraysia solar farm has paved the way for finalisation of the $277m EPC contract with DCG to build one of the largest solar farms in Australia.
This has been well flagged, although not in our numbers to date due to financial and timing uncertainty. It is a large project for DCG, and we expect the market to focus initially on solar farm EPC risk more than the reward.
However DCG has had time to plan for this project, and successful execution would shift focus toward the upside and the sector opportunities.
At this stage our unchanged valuation of $1.20 and BUY call is based on the infrastructure and resources pipelines, and factors in little for renewables.
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