Stardust Solar Energy (SUN) investor relations material

Industry trends and market outlook

• Electricity demand in urban centers like Las Vegas is extremely high, with peak usage reaching up to 80 million kWh per hour in summer.

• Renewable energy, especially solar, is positioned as the next major economic driver, following coal and oil in previous eras.

• Solar panel costs and component prices have dropped significantly, while technology and efficiency have improved, making solar more profitable.

• Solar deployment is much faster than nuclear, with commercial projects taking 8–12 months and efficiency up 58% over the last decade.

• Despite political and economic headwinds, solar adoption continues to accelerate globally, with strong tailwinds in the U.S., Canada, and other regions.

Business model and operations

• Operates a franchise model, providing branding, marketing, certified training, proposal generation, and supply chain support for a CAD 50K fee and 5% royalties.

• Training is a core revenue stream, with 80% margins and over 3,000 installers trained; training is offered both in-person and remotely.

• Product and service offerings include solar PV panels, energy storage, EV chargers, and proposal creation for franchisees and clients.

• Partnerships, such as with Tesla, drive lead generation and recurring revenue, and support innovation in customer energy management.

• Franchise network has grown organically to 106 territories, with a goal to reach 140+ by year-end, and expansion into new markets like the Caribbean, Zambia, and Mexico.

Financial performance and growth

• Achieved CAD 5 million in revenue last year with 20% CAGR and approximately 40% gross margins; forecasted CAD 8–10 million revenue this year and sustainable profitability.

• Utility-scale projects, such as a 30 MW plant in Zambia with a 20-year PPA, are expected to generate CAD 100 million in recurring revenue, with 50% retained.

• Commercial projects are being prioritized for higher ROI, contributing to recent sales growth.

• Market cap is around CAD 7 million, with stock trading between CAD 0.10 and CAD 0.15 over the past year; working capital is about CAD 900,000, and the company aims to be debt-free soon.

• Insider ownership is high, with the CEO holding 25%, and recent private placements have attracted long-term shareholders.