Monday, September 2, 2013

Sunway : Attractive entry point (DBSV)

Sunway Berhad
BUY RM2.75
(Upgrade from Hold)
KLCI : 1,703.78
Price Target : 12-Month RM 3.50 (Prev RM 3.40)
Attractive entry point

2Q13 earnings beat expectations
Record orderbook and strong unbilled sales
Next catalyst is launch of Medini, Iskandar
Upgrade to BUY, nudged up TP to RM3.50

Renewed optimism. We upgrade Sunway to BUY and nudged up TP to RM3.50 (10% discount to SOP), premised on the following: i) strong 2-3 years earnings visibility underpinned by its record construction orderbook (RM1.8bn contract wins YTD,
taking outstanding orderbook to RM4.2bn) and RM2.2bn unbilled sales anchoring our 3-year net profit CAGR of 11%; ii) credible Iskandar proxy with 1,858 acres of land (41% of SOP) and maiden launch by end-2013/early 2014; and iii) strong pricing power for key projects such as Sunway Velocity (GDV RM3.6bn) and Sunway Nexis (GDV RM1.5bn) which is able to capitalise on the current SBK MRT line.

2Q/1H13 results beat expectations. Sunway booked RM11m core net profit (+43% y-o-y, +22% q-o-q; excludes RM60m fair value gain from Sunway REIT), taking 1H13 core profit to RM201m (+42% y-o-y). This was driven by better performance from property development and construction divisions, with 1H13 EBIT jumping 61% and 71% to RM127m and RM44m, respectively. 1H13 property sales reached RM606m driven by new launches at Sunway Geo (GDV RM373m), Sunway Cassia (GDV RM106m) and Sunway Lenang Heights (GDV RM201m) which should meet its target of RM1.5bn assuming a stronger 2H. We expect construction earnings to pick up in 2H13 as 2Q13 was affected by delays in the LRT and MRT projects.

Raising earnings. We raised FY13/14/15F profits by 4%/6%/10% after adjusting for better-than-expected contract wins YTD. The stock has fallen 24% from its high and offers an attractive entry point currently. Valuations are inexpensive at 11x FY14F PE and 1.0x P/NTA, given decent earnings CAGR and assured earnings growth.




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

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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
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