Sunway excited over Iskandar project

From Star Online: Business
29th June 2013

IT may seem rather nondescript but the appointment of joint managing directors and the presence of Kumar Tharmalingam over at the Sunway group may be an indication of the direction the company would like to take. Or at least, the market it would like to have.

Sarena Cheah and Ong Pang Yen were appointed as joint managing directors of the property development division at Sunway Bhd effective May 1. They replace Ho Hon Sang who left at the end of last month.

Higher rerating in the pipeline for Iskandar?

From Star Online: Business
1st April 2013

PETALING JAYA: Property players with exposure to Iskandar Malaysia could see a rerating in the pipeline, following the planned listing of Iskandar Waterfront Holdings Sdn Bhd (IWH) in the fourth quarter of this year.

Maybank IB Research analyst Wong Wei Sum said better connectivity in the area via the rapid transit system (RTS) between Singapore and Johor and the KL-Singapore high speed rail, coupled with rising business activities and an increasing population should further lift land and property prices in Iskandar.

Wong highlighted in the report on property developers in Iskandar that the key beneficiaries include UEM Land Holdings Bhd, Sunway Bhd,Genting Plantations Bhd, IJM Land Bhd, S P Setia Bhd, Dijaya Corp Bhd, Crescendo Corp Bhd, Eastern & Oriental Bhd and KSL Holdings Bhd.

Sunway re-rated based on its RM30bil Iskandar development

From Star Online: Business
27th March 2013

PETALING JAYA: The 1,770 acres with a gross development value (GDV) of RM30bil Sunway Bhd owns in the Iskandar region and its plan to pay out dividends semi-annually are deemed as catalysts, UOB KayHian Research says.

In a report, the research house revised Sunway's target price to RM3.48 from RM2.98 as it removed the 10% discount to sum-of-the-parts. The new target price implied a 12 times 2014 forecast price-to-earnings (PE), which was slightly higher than its historical mean PE of 11 times, and remained a “buy” rating.

The research firm said: “Given that Sunway Iskandar makes up almost 30% of Sunway's revised net asset value, the market will eventually recognize Sunway as one of the key proxies to the Iskandar theme. We believe that re-rating should continue when earnings contribution begins in 2014.”