PETALING JAYA: Research houses have made a range of calls on real estate and construction outfit Sunway Bhd
, which released its fourth quarter ended Dec 31, 2024, and full-year results last Wednesday.
The results beat market estimates, driven mainly by housing sales and construction projects.
This reflects the market’s stance on broader domestic economic growth trends amid external uncertainties.
Hong Leong Investment Bank (HLIB) Research noted that Sunway’s increasing exposure to the domestic economy, as it enters a new growth phase, makes it a strong proxy for local market trends.
“Moreover, in an environment of heightened geopolitical uncertainty and potential policy risks, particularly with the upcoming changes under the Trump administration, Sunway’s predominantly domestic-focused business model stands out in its investment appeal given that it is less exposed to this risk,” it added.
The research house has maintained a “buy” call on the stock but with a slightly lower target price (TP) of RM5.70 per share from RM5.75 previously, based on sum-of-parts valuation factoring in the lower revised TP from Sunway Construction Group Bhd and the higher TP from Sunway-REIT.
It has also revised upwards the FY25 financial forecasts by 7.2% and FY26 by 6.7% to account for higher property launches and sales.
Meanwhile, MIDF Research kept its “neutral” call and cut its TP downward to RM4.73 from RM4.79, citing a higher share base following the conversion of irredeemable convertible preference shares in late 2024.
It pointed out that the positives have largely been priced in, with the listing of the company’s healthcare division and better outlook for its Iskandar Malaysia project as key catalysts to watch out for.
Kenanga Research maintained its “underperform” call on Sunway with a TP of RM3.35, citing concerns over valuation.
Sunway’s property division has set a RM3.6bil launch target for FY25, a 44% increase from FY23’s RM2.7bil, with RM1.1bil allocated to Johor.
