news

HDBSVR: Buy Sunway Holdings at RM1.49, TP RM1.95

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has a Buy call on Sunway Holdings with a sum-of-parts target price of RM1.95

Sunway had on Thursday, April 1 accepted the letter of award for a RM88 million contract from KLCC Holding Sdn Bhd to build Phase 2 of Impiana KLCC Development.

This is an extension to the existing hotel wings comprising an additional three-storey car park podium and 22-storey tower block above the existing four- storey car park podium on Jalan Pinang, Kuala Lumpur

The contract is targeted to be fully completed on Nov 2, 2011 with a sectional completion of a link bridge within 43 weeks from the commencement date.

“This is Sunway’s second contract win for 2010 bringing YTD contract wins to RM110 million. This forms c.14% of our RM800m order win assumption for FY10 and will lift Sunway’s orderbook by 4% to RM2.5 billion,” said HDBSVR in a research note on Friday.

Assuming a margin of 8%, total pre-tax profit over the duration of the contract amounts to RM7 million or 1% and 3% of FY10 and FY11 core pretax profit, it said.

“We continue to like Sunway as a small-mid cap pick to the sector. Earnings deliverance has been consistent while other key catalysts are a revival in India infrastructure contracts and the 10MP which would provide more clarity on contract flows,” it said.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE