Sunway charts new all-time highs after strong earnings meet estimates

KUALA LUMPUR (Feb 26): Shares of Sunway Bhd (KL:SUNWAY) rose to new record highs on Thursday after the property-to-healthcare conglomerate reported strong earnings that met market expectations.

Analysts, meanwhile, are staying cautious on further upside for the stock after a massive rally that has inflated its valuations to reflect the positive earnings outlook, as well as the upcoming listing of its healthcare arm and ongoing acquisition of IJM Corporation Bhd (KL:IJM).

“… we believe that the key positives are largely priced in,” CIMB Securities said and kept its “hold” call. A successful takeover of IJM, however, would be a key re-rating catalyst, the research house noted.

Sunway rose as much as 18 sen or 3% to RM6.02. The stock was trading at RM5.97 at 9.15am after more than two million shares changed hands. The company was valued at nearly RM41 billion based on its last price.

Shares of Sunway have gained some 27% in the last 12 months amid optimism over its high exposure to construction of data centres that now account for more than half of its order book. Investors also piled into the stock to bet on contract flows from major infrastructure projects in Malaysia.

There are now nine “hold” calls, three “buy” calls and one “sell” call among analysts tracked by Bloomberg, largely unchanged from a month ago. The current share price is above the average target price of RM5.82 post-results.

For MBSB Research, the upcoming initial public offering of Sunway Healthcare Group Bhd is a near-term catalyst.

However, “we think that valuation is fair with limited upside at this juncture,” MBSB Research said and maintained the stock on “neutral” rating.

Net profit for the year ended Dec 31, 2025 (FY2025) rose 13% to RM1.3 billion, underpinned by a record revenue of RM9.81 billion.

Sunway has also set the entitlement date of a previously announced dividend-in-specie to March 11, in conjunction with the proposed listing of Sunway Healthcare targeted for March 2026. Under the plan, every 10 Sunway shares entitles its holders to one Sunway Healthcare share.

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