Suncon

Suncon

Postby winston » Tue Apr 10, 2018 8:51 am

not vested

Trading Buy: SUNCON-5263
(Last price: RM2.01, Potential upside +18.4%)

Company Profile
• SUNCON offers integrated construction services and has precast concrete business in Singapore. The group has commendable execution capability, putting it in a prime spot to ride on the robust construction upcycle.

Trading Catalyst
• HLIB maintains a BUY rating with TP of RM2.85, offers 41.8% upside.
• Valuation is undemanding at 13.5x FY19 P/E (16% and 5% lower than IJM and Gamuda), supported by superior ROE of 28% as well as recurring orders from its parent company and key GLC clients.
• Strong earnings visible backed by orderbook over RM6bn.
• Downside limited amid deeply oversold levels.

Technical View
• Resistance: RM2.10 / RM2.22 / RM2.38
• Support: RM1.95 / RM1.90
• Cut loss: RM1.88

Key Financial Stats
• Trading at 13.5x FY19 P/E (ex-cash 11.7x), supported by FY17-19 earnings CAGR of 18% and strong ROE of 28%.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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