KUALA LUMPUR : Maybank IB Research has reiterated its 'buy' call on Sunway Construction Group Bhd
(SunCon) with a RM1.90 target price after the group announced a series of contract wins worth RM186mil.
In a note today, the research house said that the group's year-to-date construction orderbook now stood at RM635mil, which is inline with its assumption of RM1bil worth of job wins for the current financial year.
“SunCon will continue to eye for jobs from the Klang Valley LRT 3, Gemas-JB double track rail and the KL-Klang BRT. The restoration of its Shariah compliant status would be another catalyst to the share price,” it said.
On March 24, SunCon announced a slew of new job wins. Among them is engineering, procurement, construction and commissioning (EPCC) works for the Gas District Cooling Plant 1 in Putrajaya (RM152mil), bore piling works for Section B of the Sungai Besi-Ulu Kelang Expressway (RM18mil), and bore piling works for Section A of the Damansara-Shah Alam Highway (RM16mil).
According to Maybank IB, the new contracts and existing job wins to date have boosted SunCon's total outstanding orderbook to RM4.9bil. Its current target price of RM1.90 assumes an earnings multiple of 15 times the group's forward earnings.
As at 11AM today, SunCon's shares were last traded at RM1.79, or a one sen decrease from last Friday's close.
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