Suncity jumps after ECM Libra ups target price

KUALA LUMPUR: Sunway City Bhd rose in morning trade Monday, May 10 after ECM Libra Investment Research maintained its “buy” call and raised its target price for the stock to RM5 (from RM4.33 previously).

The research house said Suncity was one of its top picks for the sector.

"At current market capitalisation, investors are not only paying 21% discount for the net cash proceeds and 38.25% in Sunway REIT valued at RM2.2 billion but also get all its property development landbank for free.

"We raise our target price from RM4.33 to RM5 based on 14 times P/E which is one standard deviation higher than average forward P/E of 9.9 times," it said.

ECM Libra said this was justified given the 18.7% EPS CAGR over next three years, unlocking hidden value in investment properties and potential upside from further expansion.
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