Sunway remains our top pick as property recovery play given its well-integrated property, construction and building material operations. The value of the healthcare business (with new hospitals and the SMC expansion coming on stream over the next three years) has been recently unlocked with the massive valuation by GIC and could be further enhanced by its progress development and Healthcare IPO in the future. This, coupled with the value-accretive strategic team-up with Tencent-backed Chinese fintech firm Linklogis Inc and a foreign bank for the application of Malaysian digital bank licence (source: theedgemarkets), justifies the re-rating of the stock. Meanwhile, investors may consider Sunway-WB as a proxy to Sunway due to its attractive 7 sen step-down mechanism on its strike price from RM1.56 (Maturity: Oct 2021), RM1.49 (Maturity: Oct 2022), RM1.42 (Maturity: Oct 2023), and RM1.35 (Maturity: Oct 2024). Alternatively, investors may look for Sunway-PA as another exposure to Sunway (5.25sen semi-annually preferential dividend; conversion ratio 1 for 1; mandatory convert 50% of holding in the 4 th year and 50% in the final 5 th year; maturity date: 8 Dec 2025).

Sunway-Poised for a bullish Cup with Handle formation. After falling 13% from a high of RM1.76 (6 Apr) to a low of RM1.53, SUNWAY’s share prices had staged a steady rebound to close at RM1.74 yesterday. We expect an impending formation of the bullish Cup with Handle (CWH) pattern, supported by positive technical indicators. A successful brekaout above RM1.76 neckline resistance would signal that a new uptrend has begun, potentially lifting the stock to retest all-time high at RM1.81 and RM2.00 psychological barriers before heading towards our long term CWH target price of RM2.26. Supports are pegged at RM1.60-1.66. Cut loss at RM1.57.

Sunway-WB: Building base near RM0.40. After a healthy 17% pullback from 52- week high of RM0.52 to a low of RM0.43 yesterday, we see limited downside risk for the stock amid an oversold slow stochastic reading. Share price may trend sideways for a while with key supports at RM0.375-RM0.40, before regaining its upward momentum. A successful reclaim above the RM0.44 (50% FR) resistance may spur further upside towards RM0.48-0.52 soon. Cut loss at RM0.365.