- Sunway announced last Friday that its indirect subsidiary Sunway Construction has accepted a letter of award from Pulau Indah Ventures Sdn Bhd for building jobs worth a total of RM282.9mil.

- Pulau Indah is a JV between Khazanah Nasional Bhd and Temasek Holdings (Private) Ltd. The project, tagged a mixed “Urban Wellness” development in Medini North, Iskandar Malaysia, comprises two phases.

- The 26 month-project is scheduled to start on 1 September 2013 for completion by 31 October 2015.

- The first phase consists of a five-storey corporate training block, a four-storey health centre, a car-park podium, and two basement car-park levels.

- The second phase comprises two service apartment blocks (Block A: 23 storeys – 147 units; and Block B: 33 storeys – 310 units, 2 commercial units), a one-storey commercial block, a car-park podium (2 storeys and 4 commercial space units), two basement carparks, and four levels of open space car-parks on government reserve land.

- The latest win brings the total order replenishment for the year to RM1.76bil. Excluding the internal jobs – Sunway University New Academic Block (RM192mil) and Sunway Putra Place (RM258mil) – the new orders for the year totalled RM1.31bil – still within our annual assumption of RM1.5bil for the year.

- Following the completion of a few jobs – including Precinct 1, Putrajaya (Hotel & Office) and UiTM campus expansion within the last three months – the total unbilled jobs total RM4.17bil (external portion: RM3.32bil) vs. RM4.4bil three months ago (external: RM3.42bil).

- Internal jobs currently account for 20% of its outstanding order book. The MRT Package V4 remains as the single largest job, with about RM1.07bil still outstanding after having completed close to 10% of the works.

- We maintain our HOLD on Sunway with a fair value of RM3.05/share, based on a 5% discount to our SOP value of RM3.21/share.

Source: AmeSecurities