Sunday, December 8, 2013

Sunway Bhd - Uncertainties Ahead (MKE)

Sunway Bhd -
Sell (unchanged)
Share price: MYR2.65
Target price: MYR2.52 (under review)
Uncertainties Ahead

Maintain SELL. Sunway’s 9M13 core net profit of MYR325.4m (+38% YoY) came in above expectations. Management has expressed caution over the property market outlook over the next 6 months following the new property cooling measures at Budget 2014 and it intends to switch its focus to commercial properties in the Klang Valley. We are reviewing our earnings forecasts and MYR2.52 TP (0.58x P/RNAV; MYR4.34 RNAV) pending further details on 2014 new launches.


Results above expectations. 3Q13 core net profit of MYR124m (+32% YoY, 12% QoQ), lifted 9M13 earnings to MYR325m (+38% YoY), making up 81-86% of our and consensus full-year forecasts. We reckon the earnings gap was due to stronger-than-expected progress billings from property development. The YoY growth in earnings was mainly driven by: 1) MYR1.8b in unbilled sales achieved in 6M13 and 2) MYR4.2b outstanding construction orderbook as at Aug 13.

Medini project is delayed to 1H14. Sunway has raked in MYR836m in effective property sales in 9M13 or 76% of its MYR1.1b sales target for 2013. We think there is a chance for Sunway to exceed its target for 2013 given the strong take-up in the recent launch in Geo Residences thanks to attractive incentives offered (DIBS, 10% discount). Sunway has delayed the maiden launch of Sunway Medini Iskandar to 1H14 due to weaker sentiment on Iskandar Malaysia post-Budget 2014.

Support from the construction division. At end-Sep 2013, Sunway’s outstanding order book was MYR3.7b (2.3x of our construction revenue forecasts), providing medium-term earnings visibility. This year, it has secured MYR2b worth of construction works, including the MYR526m KLCC and MYR452m bus rapid transit works.

Cautious outlook. We retain our cautious outlook on the property sector (especially on luxury properties) in view of the new cooling measures in Budget 2014. Property unbilled sales stood at MYR1.8b at end of 3Q13 (1.1x our FY14 revenue forecasts)

Source/Extract/Excerpts/来源/转贴/摘录: MKE-Research,
Publish date: 02/12/13

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