PETALING JAYA: Analysts are positive on Sunway Bhd
’s prospects having secured its second successful land tender in Singapore.
The Urban Redevelopment Authority of Singapore on Sept 10, awarded the site, with a 99-year lease term, to Sunway and its Singapore-listed partner Sing Holdings Ltd.
Sunway and its local partner secured the residential site in Chuan Grove, Singapore, after submitting the best bid at S$623.91mil, about RM2.05bil, or S$1,331 per square foot per plot ratio.
Sunway’s first plot of land measuring 15,831.5sq m at Chuan Grove, Singapore, was awarded at S$703.6mil on July 17.
The price for the second land tender on a per square foot-basis was marginally lower by 3.3% than the price for the first tender.
RHB Research, which maintained its “buy” call on the counter with a revised target price of RM5.83 from RM5.81, said it believed this could be considered as a strategic bid as the consortium had just been awarded a 3.9-acre adjacent land parcel in July.
“The bigger scale of the development would make construction and marketing costs more efficient. Management’s effort to continue growing the company will likely ensure a smoother earnings trend, given the upcoming listing of Sunway Healthcare in early 2026,” the research house said. It maintained its net profit forecasts for this year to 2027.
The research house pointed out that the joint venture planned to launch the project in the second half of next year (2H27) for the first parcel, while units on the second parcel will be rolled out in 1H27.
“Sunway’s near-term earnings should be underpinned by strong unbilled sales of RM3.7bil and an construction order book of RM6.7bil,” RHB Research added.
Meanwhile, MBSB Research said it believed the growing presence of Sunway in Singapore would help sustain new sales contributions from Singapore.
However, it maintained its “neutral” call with an unchanged target price of RM5.06 as it thinks the positives from the upcoming listing of Sunway Healthcare Holdings had already been priced in.
The research house said the prospects for Sunway’s projects in Singapore aredecent with projects in Singapore contributing 31% to total sales in 1H25.
Sunway launched Otto Place, a serviced apartment project at Tengah Plantation Close in Singapore, in July and the development has see a take-up rate of 91% as of August.
“We think that an expansion of land holdings bodes well for Sunway’s growing property exposure in Singapore,” it added.
Sunway plans to develop 500 units of residential property on the land.
The research house said the gross development value of the project, which is expected to launch in 1H27, has yet to be finalised.
“Earnings impact is limited in the near-term and we maintain our earnings forecast from this year to 2027.
“Meanwhile, net gearing is expected to increase to 0.47 times from 0.42 times in 2Q25 after the award of land in Singapore,” the research house added.
