Kenanga Research has made an “Outperform” recommendation for Sunway Bhd with a target price of RM2.05
It said that with its leisure and hospitality segment badly affected during this pandemic, we believe Sunway would be a good proxy for a recovery this year in line with the easing Covid restrictions and our nations high vaccination status
It said that another positive catalyst in the immediate term is if the Sunway consortium wins the Digital Banking license to be announced by BNM next month.
On its performance, Kenanga Research said that sales excelled. 4QFY21 sales of RM440m led FY21 sales to RM2.61b (backed by RM3.2b launches) – above management’s RM2.2b target but within our RM2.7b target which it revised up twice during the year.
It said that the strong sales were mostly attributed to Singapore which contributed c.63% or RM1.65b of sales. Note, Sunway had c.RM2.0b worth of Singapore launches to be sold in 2021 from Parc Central (RM940m GDV; currently 98% sold) and Ki Residence (RM1b GDV; currently 78% sold).
