KUALA LUMPUR:AmInvestment Bank Research has maintained its Buy call and raised its FY17-19 forecasts for Sunway Construction following the securing of two contracts with a combined value of about RM137mil.
SunCons was awarded a RM74.8mil contract by Ahmad Zaki for the substructure works of Bukit Bintang City Centre, to be completed within 10 months. It also won a S$20.9mil (RM63mil) bid to supply precast components for 1,179 dwelling units at Clementi Neighbourhood in Singapore.
SunCon's year-to-date job wins now stands at RM3.89bil, which surpasses AmInvestment Research's full-year FY17F assumption of RM3.75bil. Its outstanding construction book stands at RM6.7bil.
Accordingly, AmInvestment Research's FY-FY19F forecasts have been raised by 2.6%, 2% and 1.5% respectively with a higher fair value of RM2.70.
"The earnings upgrade is to reflect the upward revision in our job replenishment assumption for FY17F to RM3.9bil. Meanwhile, we are keeping our assumption for job wins in FY18-19F at a more normalised level of RM2bil annually," said the research firm.