UOB Kay Hian Research Articles

Sunway: Potential Positive Factors Priced In

UOBKayHian
Publish date: Mon, 07 Aug 2017, 09:47 AM
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(SWB MK/HOLD/RM4.32/Target: RM4.38)

Sunway’s share price has risen 46% ytd, mainly driven by its recent free warrant issuance and a healthcare division that is gaining prominence. Its property development segment has undoubtedly been impacted by the sluggish sector but this is mitigated by its strong construction and REIT divisions. Nevertheless, we downgrade the stock to HOLD after the recent price run-up but raise our target price to RM4.38, reflecting the partial value of its healthcare division. Entry price: RM3.80.

Source: UOB Kay Hian Research - 7 Aug 2017

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