(SSR MK/HOLD/RM1.41/Target: RM1.50)

Sunsuria reported a 2QFY17 net profit of RM18.0m, lifting 1HFY17 earnings to RM28.6m. While 1HFY17 earnings account for only 29% of our forecast, we deem the results in line as we expect 2H numbers to be significantly stronger. In 1HFY17, the group raked in RM200m in property sales on the back of RM147m in launches. While fundamentals remain intact, we advise investors to capitalise, given the share price run-up of over 42% ytd. Downgrade to HOLD with a target price of RM1.50.

Source: UOB Kay Hian Research - 25 May 2017