Sunway Berhad / Jeffrey Cheah

[winston]

not vested

Sunway (RM5.24)
Results in line

Sunway reported 1Q26 core PATAMI of RM215.8m (-34.6% QoQ; +12.1% YoY), making up 18.3% of our and 16.8% of consensus full-year forecasts.

We deem the results to be within expectations, as 1Q is typically a seasonally weaker quarter for the group.

On a YoY basis, the stronger performance was underpinned by property development, driven by the new contribution from MCL, and construction, following the finalisation of accounts for several projects.

We tweaked our FY26/FY27 forecasts by -0.9%/+2.6% and introduce FY28 earnings forecast at RM1.53bn (+10.7% YoY).

Maintain BUY with a higher TP of RM6.50 (from RM5.54), based on our updated SOP valuation as we impute higher TPs from SunMed and SunCon and rollover our valuation year.

Source: HLIB

[winston]

not vested

Sunway (SWB MK) 1Q26: In Line; Balance Sheet Headroom Improves

Results are within expectations as 1Q is typically a seasonal weaker quarter for the property and healthcare segments.

Sunway saw a strong start to property sales and launches, with 1Q26 achieving 33%/44% of the full-year targets respectively.

The remaining launches for the year will be led by Johor, which should fare well on sustained optimism ahead of the RTS link’s commencement.

Maintain HOLD with a higher target price of RM5.70.

Near-term upside appears limited on rich valuations after the SHH listing and unsuccessful IJM takeover offer, alongside potential cost headwinds.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email