PETALING JAYA: Analysts have raised earnings forecasts for Sunway Bhd
after factoring in the conglomerate’s solid results in the first half of 2024 (1H24) and its growth prospects.
In a recent note, MIDF Research revised its forecast on earnings for Sunway upward by 7.2% for the financial year 2024 (FY24), 4.3% for FY25 and 1.2% for FY26.
Maybank Investment Bank Research, which upgraded its recommendation to “buy” on Sunway, raised its earnings forecast by 1.2% in FY24 and 5.8% for both FY25 and FY26. It added Sunway is on track to meet its FY24 sales target of RM2.6bil.
“Sunway has locked in RM1.3bil in property sales in 1H24 or 50% of its FY24 property sales target. Of the RM1.3bil, 22% was from its joint-venture projects in Singapore (its effective stake), 2% from China, 23% from Johor and the remaining (or the bulk of it, at 53%) from the Klang Valley.”
It also noted that Sunway’s core net profit for the second quarter of FY24 was in line with expectations.
Meanwhile, Hong Leong Investment Bank (HLIB) Research said Sunway’s “good results showing” was supported by improvements across all segments, particularly in property development and healthcare.
Additionally, HLIB Research noted that Sunway’s recent inclusion into the MSCI Malaysia Index effective Aug 30 enhances the stock’s visibility among global investors, particularly institutional investors who track or benchmark against MSCI indices.
