Sunway shares up on bullish 3Q results
Date：2014/11/21
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KUALA LUMPUR: Sunway Bhd’s shares rose four sen to RM3.27 as at 9.36 am, with demand boosted by its bullish third quarter results.
During the quarter, which came within analysts and consensus expectations, Sunway’s core earnings increased 20 per cent to RM149.3 million compared to the same quarter a year ago.
For the nine months period, the core earnings expanded to RM386 million.
Property sales stood at RM323 million, taking the nine months 2014 sales to RM951 million.
Following this, AffinHwang Capital has upgraded its recommendation on Sunway to “buy” from the previous “add“, with an unchanged target price of RM3.60.
“We continue to like Sunway for its strategic property land bank and extensive experience in the construction sector,” the research house said in a note Friday.
Meanwhile, AllianceDBS Research said the listing of Sunway Construction Group is on track, and to be completed by the second quarter 2015.
It said Sunway’s vast land bank, worth RM50 billion in gross development value across the Klang Valley, Iskandar Malaysia and Penang, would ensure sustainable growth going forward.
AllianceDBS has maintained a “buy” call on Sunway with a RM3.90 target price.