Stock Name: SUNWAY
Company Name: SUNWAY HOLDINGS BHD
ECM Libra Investment Research has maintained a "buy" on Sunway Holdings after the company secured a RM569 million contract for Package B of the Kelana Jaya Line Extension Project.
"With year-to-date new jobs of RM962 million, it is on track to achieve our annual order book replenishment estimate of RM1.5 billion," the research house said today.
"This job also strengthens its credential to win some of the 11 packages of MRT jobs it has been prequalified for," it added.
In a statement yesterday, Sunway Holdings said works under Package B, awarded to Sunway Construction, involved the construction and completion of facilities along a 8.1km route from Persiaran Kewajipan in Subang Jaya to Putra Heights.
The 29-month project is expected to contribute positively to Sunway group's earnings for the financial year ending 2012 onwards.
ECM Libra also said that the impending completion of Sunway Holdings' merger with Sunway City would remain the key re-rating catalyst.
The merged entity would make it as an integrated developer with in-house construction capabilities, thereby raising prospects for revenue and cost synergies, it said.
"It will also be one of the earlier beneficiaries of the Sungai Buloh-Kajang MRT line as it has two key commercial projects with combined gross development value of RM5.6 billion located along this line.
"We believe the immediate fair value of the merged entity should be RM3.71 per share. Working backwords, this suggests fair value of Sunway Holdings should be RM3.41." -- Bernama
Company Name: SUNWAY HOLDINGS BHD
| Research House: ECMLIBRA | Price Call: BUY | Target Price: 3.71 |
ECM Libra Investment Research has maintained a "buy" on Sunway Holdings after the company secured a RM569 million contract for Package B of the Kelana Jaya Line Extension Project.
"With year-to-date new jobs of RM962 million, it is on track to achieve our annual order book replenishment estimate of RM1.5 billion," the research house said today.
"This job also strengthens its credential to win some of the 11 packages of MRT jobs it has been prequalified for," it added.
In a statement yesterday, Sunway Holdings said works under Package B, awarded to Sunway Construction, involved the construction and completion of facilities along a 8.1km route from Persiaran Kewajipan in Subang Jaya to Putra Heights.
The 29-month project is expected to contribute positively to Sunway group's earnings for the financial year ending 2012 onwards.
ECM Libra also said that the impending completion of Sunway Holdings' merger with Sunway City would remain the key re-rating catalyst.
The merged entity would make it as an integrated developer with in-house construction capabilities, thereby raising prospects for revenue and cost synergies, it said.
"It will also be one of the earlier beneficiaries of the Sungai Buloh-Kajang MRT line as it has two key commercial projects with combined gross development value of RM5.6 billion located along this line.
"We believe the immediate fair value of the merged entity should be RM3.71 per share. Working backwords, this suggests fair value of Sunway Holdings should be RM3.41." -- Bernama
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