Aboitiz backed solar startup sees 272% surge in solar inquiries

From AB Capital's The Opening Bell: Three Moves

Event

Solviva Energy, Aboitiz Power (AP)'s residential solar startup, saw customer inquiries surge 272% YoY from March-August. It plans to expand beyond Greater Manila into Cebu and Davao, supported by the Department of Energy (DOE)'s streamlined rules for residential and small-scale solar installations.

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We see this as an early positive for AP, but not yet material to our estimates, as the business remains small and high upfront costs can still temper adoption. Its zero-down payment and flexible payment options should help lower this hurdle. More importantly, AP is expanding across the power value chain and closer to the end consumer, with its RES business and now retail solar.

Catalyst

The key watchpoints are installation conversion, rollout beyond Greater Manila and unit economics, which will determine whether Solviva can scale into a meaningful contributor to AP.

Action

We have an Outperform rating on AP with a P51.6/sh target. The investment case remains anchored on defensive cash flows and near-term upside from elevated spot power prices, while Solviva adds longer-term optionality from residential solar.

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