Sunway Berhad / Jeffrey Cheah

[winston]

not vested

On track
Profit and sales in line; maintain HOLD

Sunway’s 1Q25 core net profit of MYR203m (+18% YoY, -37% QoQ) and locked-in sales of MYR555m were in line.

We maintain our FY25–27E earnings forecasts, with our FY25E sales assumption unchanged at MYR3.6b (+19% YoY).

We raise our SOP-based TP to MYR5.14 (from MYR5.02) after imputing a higher TP (+26%) for Sunway Construction Group (SCGB MK; MYR5.24 TP; BUY).

Maintain HOLD.

https://mkefactsettd.maybank-ke.com/PDFS/459813.pdf

[winston]

not vested

Wins RM1.1bn DC but looking fairly valued

Wins RM1.1bn DC upsizing for US MNC, bringing YTD wins to RM3.5bn, more than half of its higher-end target for FY25F.

Share price has returned 82% over 12M; valuations look fair at FY25F P/E of 24x (ex-cash 22x) with earnings likely to peak in FY25F-26F, in our view.

Downgrade to Hold, but tweaking EPS up for a higher TP of RM5.90.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 7B6BD814E4

[winston]

not vested

Strengthening industrial presence in Selangor

Deepening industrial exposure in Rawang

We are positive on SWB’s latest land acquisition in Rawang for its attractive pricing.

The land, which is adjacent to its existing land (245 acres) there, will be developed into an industrial park to be launched by FY28E.

We raise our earnings forecasts by +4-10% following our earnings upgrade in SCGB.

Our SOP-TP is raised to MYR5.31 (+17sen) due to higher TP for SCGB (+148sen, from MYR5.24). U/G SWB to BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/467450.pdf

[winston]

not vested

Long-term growth prospects of Sunway poised to remain positive

Near-term catalysts from stronger-than-expected construction wins, conversion of land in Johor to freehold status and healthcare listing in early 2026.

We see the listing of Sunway Healthcare Group which is expected by 1H26 to be the near-term catalyst to Sunway Bhd.

We understand that existing data centre tenders are progressing without delays, rebutting concerns on slowdown in award of data centre contracts. Management remains confident to achieve a RM6bil order book target in 2025.

UOBKH Research also stated Sunway’s healthcare listing is on track for early 2026, “potentially unlocking significant shareholder value”.

“We estimate a potential market valuation of RM16bil to RM19bil, based on 22 times to 26 times 2027 earnings before interest, taxes, depreciation, and amortisation of RM765mil.

Source: The Star

https://www.thestar.com.my/business/bus ... n-positive

[winston]

not vested

A resilient quarter

Profit and sales in line Sunway’s 2Q25 and 1H25 core net profit was within our and consensus FY25 expectations.

YoY and QoQ earnings growth was mainly driven by its construction business.

Including the launch of Otto Place in Singapore in July 2025, 7MFY25 locked-in sales of MYR2.3b were within expectations.

We maintain our FY25–27E earnings forecasts and FY25E sales assumption of MYR3.6b (+20% YoY).

Our SOP-based TP is marginally lifted to MYR5.32 (from MYR5.31) after accounting for the change in our Sunway REIT TP. Maintain HOLD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/482341.pdf

[winston]

not vested

Sunway (SWB MK) 2Q25: Miss Expectations; Expect To Ramp Up Launches In 4Q25

Sunway’s results missed our expectations due to higher-than-expected costs.

7M25 sales are on track, achieving 64% of the full-year sales target, underpinned by the strong takeup of Otto Place launched in Jul 25.

We remain positive on Sunway, backed by launch ramp-up into 4Q25 and near-term catalysts from the conversion of Medini land to freehold status and healthcare listing in early-26, which should unlock shareholder value.

Maintain BUY with a lower target price of RM5.70 (from RM5.81).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

A slew of positive indicators

Property launches should pick up in 4Q25F and meet FY25F presales target of RM3.6bn;

Suncon’s tenderbook for DCs remains healthy.

SHG’s two new hospitals are on track to be EBITDA positive within a year of opening, similar to Sunway Medical Centre Velocity.

We reiterate our Add call with a TP of RM5.90.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 95850304F3

[winston]

Sunway Bhd Approaching fair value

3Q25 results missed expectations; property presales on track to hit its FY25F targets.

Completed MCL Land acquisition; SHG listing on track for 1Q26F, which is the last meaningful catalyst for the stock.

Limited upside to TP of RM5.90; downgrade to Hold

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 08D7A6617B

[winston]

not vested

5211 SUNWAY (BUY)
What happens after healthcare listing?

Sunway Healthcare Holdings (SHH), Sunway’s healthcare arm, is expected to be listed on Bursa Malaysia by Mar 2026.

While Sunway’s stake in SHH will dilute from 84% to ~69.5%, the earnings impact to the group is modest (~2.6% reduction on a pro forma 9M25 basis).

Looking ahead to FY26, we still expect the group to deliver earnings growth post SHH listing, supported by newly opened hospitals (SMCD, SMCI) turning profitable, as well as strong double-digit growth in Sunway’s property segment driven by Singapore contribution following the MCL acquisition.

On a pro-forma basis, our SOP-derived valuation for Sunway post SHH listing eases to RM5.61 (from RM6.05), although the eventual roll-over of valuation base year from FY26 to FY27 should partially mitigate the dilution impact.

Maintain forecasts and BUY with an unchanged TP of RM6.05, based on SOP valuation.

Source: HLIB