PETALING JAYA: Sunway Bhd
’s earnings momentum is expected to strengthen over the next three years, underpinned by a faster construction billing cycle, resilient property sales and the impending listing of its healthcare arm, according to several research houses.
CIMB Research said it has raised its 2026 and 2027 core profit forecasts for Sunway by 8% and 6% to RM1.2bil and RM1.3bil, respectively, citing accelerated billings cycle for the company’s construction order book and higher projected earnings for Sunway Healthcare Group.
The research house also introduced a 2028 core earnings forecast of RM1.5bil.
CIMB Research raised its target price for Sunway by 5.4% to RM5.90.
However, it maintained its “hold” call on the counter, noting key positives had been mostly priced in at 2026 and 2027 price-earnings ratios of 33 and 30 times, respectively, with limited upside.
“Buoyed by a record-high RM5.2bil worth of new contracts in 2025, Sunway’s construction arm Sunway Construction Group Bhd has set a higher construction order book replenishment target of RM6bil for 2026,” CIMB Research said.
Similarly, TA Research has raised its 2026 and 2027 earnings forecasts for Sunway by 1.7% and 8%, respectively, and rolled forward its base year to 2027.
As such, the research house revised its target price for Sunway to RM6.25 from RM6.04 previously.
It maintained its “hold” rating on the counter.
TA Research also increased new sales assumptions for Sunway by 17% and 12% to RM4.2bil for both 2026 and 2027, supported by RM4.8bil worth of property launches in Johor, the Klang Valley, Penang and Ipoh, as well as Singapore and China.
“With unbilled property sales of RM9.5bil and an outstanding external construction order book of RM3.3bil, the group has solid earnings visibility over the next three to four years,” TA Research said.
