(SREIT MK/HOLD/RM1.73/Target: RM1.85)

Sunway REIT reported decent core net profit growth of 7.4% in FY17, largely thanks to its resilient retail segment as well as a slight improvement in its office division, both of which partially mitigated the weaker performance from the hotel segment. Moving into FY18, we believe that Sunway REIT’s earnings will continue to see modest growth from the retail segment as well as an improvement from the hotel division. Maintain HOLD. Target price: RM1.85. Entry price: RM1.67.

Source: UOB Kay Hian Research - 11 Aug 2017