Slow LRT3 progress to drag on Sunway Construction earnings, says AmInvestment

KUALA LUMPUR: AmInvestment Bank research expects Sunway Construction Bhd's 9MFY19 results to fall short of market estimates due to the slow progress in the Light Rail Transit 3 (LRT3) project.

"We expect Sunway Construction’s 9MFY19 results, due to be announced on 19 Nov 2019, to come at RM90–95mil at the net level (an earnings decline of 12–17% YoY).

"This will be broadly in line with our expectations at 69–73% of our full-year forecast, but fall short of market expectations at only 63–67% of full-year consensus estimates," it said in a note.