Maybank maintains Hold on SunCon, TP at RM1.70

KUALA LUMPUR: Sunway Construction Group Bhd’s latest job win has brought its year-to-date wins to RM967mil, on track to its FY19E target of RM1.5bil, says Maybank Investment Bank research.

The research house made no changes to its earnings, having already factored in the job wins, while keeping the target price unchanged at RM1.70.

To recap, SunCon was awarded a RM100mil contract by Sunway Marketplace Sdn Bhd for the proposed construction of a 14-level hotel block in Sunway Iskandar, Johor.

The project is expected to be completed over 15 months to 3Q20.

Measnwhile, Maybank said SunCon’s collaboration with a Myanmar contractor is within expectations, as it had stated its intention to foray into the Myanmar market.

SunCon’s unit Sunway Builders (Myanmar) Co Ltd had signed a memorandum of understanding with Capital Construciton Ltd (CCL) to jointly bid for projects to be developed by Capital Diamond Star Group over the next three years.

The projects involve property developments in Yangon and Mandalay as well as external infrastructure projects, said Maybank.

For internal projects, CCL will be the lead member taking a 65% stake in the JV to 35% by Sunway Builders

For external jobs, Sunway Builders shall be the lead members with 60% share of the JV.

“The MoU shall serve as a basis for consensus of the collaboration until the definitive agreements are signed before the submission of tenders,” said Maybank.

Source : TheStar