Saturday, August 31, 2013

Sunway : Earnings On Track (MKE)

Sunway
Buy (unchanged)
Share price: MYR2.75
Target price: MYR3.47 (unchanged)
Earnings On Track

Maintain BUY. Sunway’s 1H13 results were within expectations. 1H13 locked-in property sales of MYR492m are on track to meet its 2013 sales target. Given strong property product launches in the pipeline (≈MYR1.5b new launches in 2H13), Sunway could exceed its internal sales target of MYR1.1b for 2013 (2012: MYR1.6b). No change to our earnings forecasts and MYR3.47 TP (on 20% discount to RNAV).


Results tracking expectations. 2Q13 core net profit of MYR111m (+23% QoQ, +43% YoY), lifted 1H13 earnings to MYR201m (+42% YoY), making up 50-53% of our and consensus full-year forecasts. Earnings growth was mainly driven by: 1) MYR1.6b in property sales achieved in 2012, 2) MYR4.2b outstanding construction orderbook as at today, and 3) strong net income growth for SunREIT (+15% YoY).

Decent property sales recorded. Despite the lack of new launches in 1H13, Sunway has managed to lock in MYR290m in property sales in 2Q13, lifting 1H13 sales to MYR492m, or 45% of its MYR1.1b sales target for 2013. We think there is a high chance for Sunway to exceed its internal target for 2013 given strong pipeline launches including Sunway Iskandar phase 1 and the Novena project in Singapore. Our earninngs forecasts have impute MYR1.4b new sales in 2013.

Bidding for MYR600m worth of building works. We understand that Sunway is currently bidding for another MYR600m worth of building works. YTD, it has secured MYR1.76b of contracts, lifting total outstanding order book to MYR4.2b (2.6x of our construction revenue forecasts). This is close to our MYR1.8b job win target for 2013. Hence we make no change to our assumptions.

Preferred pick for Iskandar Malaysia play. We prefer Sunway to UEMS due to: 1) its relatively low foreign shareholdings of 5.9% (vs. UEMS' 20.4% as at July 2013), 2) cheaper valuations at 10.4x/0.9x PER/PBV (2014) vs. UEMS' 19.8x/2.0x, 3) support from the other businesses like construction, and 4) steady dividend income from SunREIT.




Source/Extract/Excerpts/来源/转贴/摘录: MKE-Research
Publish date:30/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock