PETALING JAYA: Sunway Bhd
is poised to unlock significant value through the planned listing of its healthcare arm, Sunway Healthcare Holdings (SHH), in the first quarter of 2026, with analysts expecting strong institutional interest and scarcity-driven premiums to underpin demand.
Hong Leong Investment Bank (HLIB) Research has maintained its “buy” call with an unchanged target price of RM6 for Sunway, citing the dual appeal of its diversified portfolio.
“We see Sunway as a dual-play from the crystallisation of the value through the SHH listing and the cyclical recovery of the property and construction sectors, positioning it as both a healthcare proxy and a domestic economic proxy,” the brokerage wrote.
“Buying Sunway today provides assured entitlement to SHH shares via the dividend-in-specie distribution; allowing direct participation in SHH’s future growth without additional capital outlay,” it added.
HLIB Research drew parallels between SHH’s upcoming listing and the debut of 99 Speed Mart Retail Holdings Bhd, noting both share a constrained free float expected to drive scarcity premiums.
“SHH will be one of the very few listed hospital operators on Bursa Malaysia, giving it scarcity value in a market with limited healthcare proxies,” the research house said, assigning SHH a valuation of RM20.2bil based on 25 times the estimated 2026 enterprise value (EV)/earnings before interest, tax, depreciation and amortisation (Ebitda), potentially qualifying it as an FBM KLCI constituent.
TA Research echoed the bullish stance, reiterating its “buy” rating with a target price of RM5.76. It highlighted that the proposed spin-off delivers benefits to both Sunway and SHH, unlocking value while rewarding shareholders directly.
The research house estimated SHH’s equity value at RM19.3bil on 25 times the 2026 EV/Ebitda, a premium justified by its expansion pipeline of over 3,400 beds by 2032.
While Sunway’s stake would dilute to 69.5%, TA Research described the earnings impact as manageable, as Sunway’s property and construction segments are entering strong upcycles.
RHB Research also maintained its “buy” call with a TP of RM5.81, noting that Sunway’s initial public offering (IPO) structure is well-balanced. It projected Sunway could raise RM640mil from its offer for sale, while SHH may secure RM730mil from new issuances.
“More importantly, in our view, the funds should be used to finance strategic opportunities in property development and property investment so that the temporary earnings blip can be rapidly recovered after the listing of SHH,” RHB Research noted.
In contrast, MBSB Research struck a more cautious tone, valuing SHH at RM16bil and maintaining a “neutral” call on Sunway with a target price of RM5.06.
“While the listing of the healthcare division is positive for Sunway, we see that most of the positives are priced in,” it explained, flagging that SHH’s Ebitda for the first half of 2025 fell 21.8% year-on-year due to startup losses from new hospitals.
Sunway announced the proposed listing last Friday, with plans involving a share split, dividend-in-specie distribution, IPO and eventual listing of SHH shares on Bursa Malaysia. The exercise is slated for completion by the first quarter of 2026.
