KUALA LUMPUR, Jan 5 — AmInvestment Bank has maintained a ‘buy’ call on Sunway Construction Group (SCG) given its current outstanding order book of RM4.3 billion as of September 2015.
SCG is targeting to launch RM1.6 billion worth of projects in 2016 against an estimated RM1.2 billion in 2015.
“About 63% of its strategic launches for 2016 will be in the Klang Valley, 25 per cent in Johor and six% each in Ipoh and other areas,” said AmInvestment Bank.
The group’s outstanding order book amounted to RM4.3 billion in September 2015 compared to RM2.69 billion as at end-June 2015. The group secured RM2.6 billion worth of jobs in 2015.
“For construction, 2016 and 2017 look set to be a busy year for Sunway, given its current outstanding order book as well as Mass Rapid Transit, Light Rail Transit and Bus Rapid Transit (BRT) prospects ahead,” it said in a research note.
SCG delivered the country’s first BRT project at Bandar Sunway.
“We maintain a ‘buy’ with an unchanged fair value of RM3.54 per share and we continue to believe Sunway’s long-term prospects are intact, notwithstanding the current blip in the property market.
“Its other divisions, including property investments, will cushion the negative impact,” said AmInvestment Bank.
As at mid-day, SCG was up one sen at RM1.38 with 913,300 shares traded.