Sunway Construction Group Berhad (SUNCON) delivered an which stands at RM5.3bn as of 4Q23. SUNCON also delivered a growth in net profit for FY23.
Among key orders includes Singapore’s HDB which targets to launch about 19,600 Build-To-Order (BTO) flats may provide upside move towards the precast segment.
Malacca Securities (MSSB), in its Technical Note today (Mac 12), said SUNCON could be on the verge of a breakout, targeting RM2.73-2.75, with a LT target at RM2.85. Support is set around RM2.48-2.54, with a cut loss set around RM2.45
SUNCON delivered a growth in net profit for FY23. In FY23, SUNCON has achieved a net profit of RM145.1m from RM135.2m (+7.34% YoY) on the back of stronger revenue at RM2.67bn from RM2.16bn (+23.6% YoY). The revenue increase was mainly due to increased contribution from its construction and precast segments.
Outstanding orderbook stands at RM5.3bn as of 4Q23 will provide earnings visibility to SUNCON for the near-term. Meanwhile, SUNCON raised target orderbook replenishment or 2024 to a range of RM2.5-RM3.0bn.
In 2024, Singapore’s HDB targets to launch about 19,600 Build-To-Order (BTO) flats across three sales exercises in February, June and October. Given that over 90% of SUNCON’s precast segment sales are tied to Singapore HDB flats, there should be healthy demand for the precast segment.
Technical Outlook
Share price has been consolidating and last closed at RM2.59. As the technical readings are positive, MSSB expects a follow-through buying interest to be seen in the near term, targeting RM2.73-2.75, with a LT target at RM2.85. Support is set around RM2.48-2.54, with a cut loss set around RM2.45.
SUNCON provides construction and engineering services. The Company offers its services throughout Malaysia.
