Stock Name: SUNWAY
Company Name: SUNWAY HOLDINGS BHD
Research House: ECMLIBRA



The earnings estimate of Sunway Holdings Bhd has been revised upward by 1.1 per cent for the financial year 2012, taking into account the contributions to be generated by the Tampines development, says ECM Libra Investment Research.

Last week, Sunway Holdings in filing with Bursa Malaysia said the Housing and Development Board of Singapore had awarded the tender for a parcel of land in Tampines Avenue 8 on a 99-year lease term at S$187.59 million or about RM450 million.

The tender was jointly submitted by Hoi Hup Realty Pte Lt, SC Wong Holdings Pte Ltd and Sunway Developments Pte Ltd, a wholly-owned subsidiary of the group.

"We are positive about the project as the group has significant experience in the Singaporean property market, having launched three projects since 2008.

"Another private housing development located in Yishun is slated for launch in the second half of next year," ECM Libra said in a research note today.

The research firm said the group's Singaporean projects have thus far registered strong sales.

ECM Libra said Sunway remains its top "buy" for the construction sector.

This is premised on a strong earnings growth of 86.5 per cent in this financial year, more landbank acquisitions in the pipeline and strength in securing overseas construction contracts, the research firm said. -- Bernama