MBSB Investment Bank Bhd (MBSB Research) maintained a NEUTRAL call on Sunway Bhd with a revised target price of RM5.28 from RM5.26, noting that while the group’s SGD750.6 million River Valley Green land win in Singapore strengthens its regional footprint, analysts said near-term catalysts remain limited despite the incremental uplift to RNAV valuation.
MBSB highlighted on Sunway’s Singapore property arm securing a 99-year leasehold residential site measuring 11,516 square metres at River Valley Green through a joint venture with CSC Land Group under a 60:40 equity split, marking a further step in its expansion into the Singapore residential market following its acquisition and rebranding of MCL Land in 2025.
The research house highlighted that the proposed development will comprise more than 500 condominium units with an indicative gross development value of SGD1.4 billion or RM2.7 billion, with construction expected to span 60 months from June 2026 and launch targeted for the second half of 2027. The site is located near Great World MRT Station, which analysts said provides strong connectivity and long-term attractiveness.
However, MBSB noted that the acquisition will be funded through a mix of internal funds and borrowings, which is expected to lift Sunway’s net gearing to 0.38 times from 0.32 times in 1QFY26. Analysts said earnings contributions from the project are only expected from FY28 onwards, limiting near-term financial impact despite the strategic expansion.
As of 10.37 am, the stock price was noted at RM5.19.
