TA Research said its believes the group has a strong chance of surpassing its RM3.6bil sales target for this year.
PETALING JAYA: Sunway Bhd
is expected to navigate 2026 with mixed momentum, as analysts are expecting earnings moderation even against a backdrop of firm property sales, expanding healthcare operations and a growing presence in Singapore.
The group’s results for the third quarter of this year (3Q25) and the first nine months of this year (9M25) prompted differing views among research houses.
Maybank Investment Bank Research (Maybank IB Research) said Sunway’s 3Q25 and 9M25 core net profit were below expectations, although property sales of MYR3.1bil for 9M25 were in line with expectations.
The research house added: “We lower our earnings forecasts for this year to 2027 by between 3% and 10% to factor in slower progress billings and the recent downgrade in Sunway Construction Group Bhd’s (SunCon) earnings forecasts.”
Even so, the research house raised its sum-of-parts-based target price to RM5.61 from RM5.32, and maintained a “hold” call on Sunway.
Maybank IB Research highlighted that Sunway secured RM3.1bil in property sales in 9M25, representing 86% of its full-year target of RM3.6bil.
It said major 4Q25 launches include Sunway Serene 2, Sunway Cochrane, Sunway Majestic, Sunway Lakehills and Sunway Sakura 2. Effective unbilled sales stood at RM5.2bil, supported by SunCon’s RM3.9bil in job wins as of September.
RHB Research took a more upbeat stance, maintaining a “buy” recommendation with a target price of RM6.08.
It said Sunway’s 3Q25 results were in line with expectations, with RM3.1bil in 9M25 property sales driven mainly by the launch of Otto Place in Singapore. The healthcare division also gained traction as Sunway Medical Centre Damansara, which opened last December, broke even on earnings before interest, taxes, depreciation and amortisation terms in August.
The research house said: “We expect sales from Sunway Cochrane, Sunway Majestic and Sunway LakeHills in Johor to be strong, with take-up rates for the three projects already at 43%, 21% and 20%, respectively.”
It added unbilled sales and the construction order book stood at RM5.2bil and RM5.4bil, respectively, lifted by the acquisition of MCL Land, now renamed Sunway MCL.
TA Research said its believes the group has a strong chance of surpassing its RM3.6bil sales target for this year.
“We believe the group has a strong likelihood of surpassing this target, supported by encouraging responses to recent launches as well as steady sales from ongoing projects,” the research house said
It emphasised Sunway’s enlarged Singapore footprint following the RM2.4bil acquisition of MCL Land, alongside joint-venture land purchases at Chuan Grove worth S$1.33bil or about RM4.23bil.
It viewed the construction segment as being well positioned to benefit from digital infrastructure expansion, citing RM3.9bil in new orders. TA Research raised its target price for Sunway to RM6.05 from RM5.76, and kept its “hold” call on the counter.
For 3Q25, Sunway reported net profit of RM338.14mil versus RM376.08mil a year ago, while revenue rose 26.43% year-on-year (y-o-y) to RM2.57bil. The group’s 9M25 net profit slipped 2.09% y-o-y to RM801.64mil, despite revenue surging 49.05% y-o-y to RM7.49bil.
