Posted by InvestNotGamble > 2020-08-26 16:29 | Report Abuse

Any price below 1.6 is super bargin for sunway. Safe and Sound investment.

Remember: We Invest Not Gamble!

Posted by InvestNotGamble > 2020-08-26 16:36 | Report Abuse

From Hong Leong Analyst

Sunway reported 1HFY20 core PATMI of RM76.4m (-69.4% YoY). Effective sales stood at RM586m (76% of revised target). Note that Sunway has revised its effective sales and launch targets to RM770m and RM2.1bn respectively. Effective unbilled sales stood at RM2.5bn (4.6x cover ratio). On the healthcare segment, SMC’s latest utilisation now hovers close to 65% from its low of <20% previously. 2HFY20 will be supported by the handover of overseas projects of RM160m to the bottom-line. We increase our FY20/21/22 forecasts conservatively by +1.2%/+1.1%/+0.4% and maintain BUY with an unchanged TP of RM1.95 based on a 10% holding discount.

Slightly above. Sunway reported 2QFY20 core PATMI of RM7.4m (-89.3% QoQ, - 93.4% YoY) bringing 1HFY20 core PATMI to RM76.4m (-69.4% YoY) which forms 19.7% and 17.3% of our and consensus full year forecasts, respectively. Despite only forming 19.7% of our estimates, we deem the results slightly above expectations as 2QFY20 had better-than-expected contributions from the Property Development segment while 2HFY20 will be supported by the handover of overseas projects of RM160m to the bottom-line. 1HFY20 core PATMI was derived after excluding - RM26.5m in EIs (-RM16.5m revaluation loss and -RM10m of impairments).

Dividends. None declared (2QFY19: 4.57 sen per share, inclusive of treasury share).

QoQ/YoY. Core PATMI fell -89.3%/-93.4% to RM7.4m from lesser revenue sources due to MCO coupled with unavoidable operating costs. Nonetheless, most of the segments remained profitable with the exception of Property Investment, Quarry and Healthcare (largely stemming from SMCV).

YTD. Core PATMI dropped -69.4% to RM76.4 on the back its operations impacted by MCO coupled with lower contributions from its associates.

Property development. New effective sales of RM64m was achieved in 2QFY20, bringing 1HFY20 to RM586m (76% of revised target). Note that Sunway has revised its effective sales and launch targets to RM770m (from RM1.4bn) and RM2.1bn (from RM3.3bn) respectively as seen in Figure#3. Effective unbilled sales stood at RM2.5bn, representing a strong cover ratio of 4.6x on FY19’s property revenue.

Construction. SunCon reported 1HFY20 core earnings of RM4.6m (-74% QoQ, -86% YoY) while current orderbook stands at RM6.3bn which implies a healthy cover of 3.6x on FY19 construction revenue.

Healthcare. The overall performance was impacted by the Covid-19 fear as number of admissions and outpatient treatments dropped with elective surgeries being postponed. The segment reported a net loss of -RM16m (1HFY20 net loss -RM20.4m) as it was further impacted by SMCV registering an operating loss of -RM9.5m (1HFY20: - RM21.5m). On a brighter note, SMC’s latest utilisation now hovers close to 65% from its low of <20% previously.

Outlook. We expect a strong earnings recovery in 2HFY20 as it will be underpinned by the block recognition of property projects delivered in Singapore (RM120m) and Tianjin, China (RM40m) in 4QFY20. This is further supported by the normalisation of construction activities by SunCon, Leisure & Hospitality division (theme park operating from July onwards), retail malls and Healthcare division. Separately, the group will hold the EGM on the approval of ICPS on 2 Sept. The offering of ICPS is attractive given the dividend yield of 5.25% based on primary shares.

The hidden gem. Sunway’s hidden gem lies in the healthcare sector with its concerted efforts to build new hospitals and expanding the established Sunway Medical. We gather that the group will likely invite strategic shareholders to expedite the development of the Healthcare division prior to a potential separate listing in later years.

Forecast. We increase our FY20/21/22 forecasts conservatively by +1.2%/+1.1%/+0.4% as we impute better contributions from the Property Development segment, given the resumption of construction works, pending further clarity on the magnitude of its recovery.

Maintain BUY but with an unchanged TP of RM1.95 based on a 10% holding discount to SOP-derived value of RM2.17. Sunway remains our top pick in the property sector given its well-integrated property and construction developments. The value of the healthcare business (with new hospitals and the SMC expansion coming on stream over the next three years) has yet to be appreciated as it is embedded within the parent - co. This, coupled with the resilient earnings from matured investment properties alongside its growing building materials business and quarry operations, justifies for the re-rating of the stock.

Posted by david6055my > 2020-08-26 16:57 | Report Abuse

@InvestNotGamble What does icps means in layman terms?

Posted by klsebursamalaysia > 2020-08-26 18:03 | Report Abuse

=.=lll.. 2Q net loss 6.7 millions, last 4Q PE shoot up to ~17. 3Q definitely cannot earn so much as last year, PE will shoot up to ~20 with the current price. This is the reason why share price remain the same as March'20 time. Better follow Cold eye method to buy growth stock. T.T

Posted by InvestNotGamble > 2020-08-26 22:29 | Report Abuse

@david6055my, ICPS is the recent activity proposed by Sunway management to give existing shareholder chance to buy preferential share based on 5 to 1 Ratio at rm1 per share. This is to gather new funding from shareholder to strengthen sunway’s cash flow to make sure she surf through covid crisis. In order for this to take effect major shareholder like Jeffrey Cheah and EPF need to chip in to make this works, so to launch this first Sunway must obtain support from major shareholders, and they set a minimum 900m funding target to be raised. And it is stated clearly 70% of the funding to be used for loan clearing, 20% for medical field development. This is a very good move indeed. And holder of ICPS get 5%++ interest per year, and get to convert into mother share at the 4th-5th year.

To make it simple, major shareholders of sunway berhad is willing to inject more capital into the company due to strong confident and ambition on future growth, and they won't do it for free, they want to do it at a discounted price rm1, and get 5++% interest per year (much better than FD at the moment).

So if you ask me this ICPS (Irredeemable convertible preference shares) is worth or not, i will tell you this is the brilliant idea of sunway majority shareholders figure out how to get more share at discounted price and make it a 5 year high interest FD at the same time.

Remember u can only buy 1 for each 5 sunway share u hold.

Posted by InvestNotGamble > 2020-08-26 22:35 | Report Abuse

@klsebursamalaysia true, that's why sunway share price is at all time low because of covid, but all their fundamentals are not affected, and all the losses are already factored in, in fact sunway qr performance is way above expectation. only 4m loss after tax. Considering sunway still have 5B cash reserve before ICPS, one quarter lose 4M you imagine how long this company can survive assuming RMCO prolong. Comparing to airasia, one quarter kaput lost 1B hit PN17, another quarter dry out. Sunway management team is way better.

Before invest in a company, choose a company with reputable leader, and great management skill. Sunway has both. And their future medical line growth is a hidden gem that will take their share price above RM5 once appreciated.

Posted by InvestNotGamble > 2020-08-26 22:39 | Report Abuse

The small 2QFY20 core loss of RM0.4m brought 1HFY20 CNP to RM66.1m accounting for 15% each of our and consensus full-year estimates. We deem the results as well within expectations as we expect 2HFY20 to deliver much better profits from: (i) recommencement of business activities post MCO, and (ii) a lump sum PAT recognition worth RM160m from two property projects which will be billed upon completion namely Sunway Gardens, Tianjin and Rivercove Residence, Singapore.

Posted by david6055my > 2020-08-27 10:58 | Report Abuse

@InvestNotGamble thanks for the explanation. I'm glad that i bought it @1.29

Posted by InvestNotGamble > 2020-08-27 11:28 | Report Abuse

SUNWAY BREAKING 1.4 TODAY!!! When everyone telling u the stock is undervalued with great potential, and it is at share price all time low. Providing good management and reputable branding. What are you waiting for?? Sapu before it breaks 1.6!!!

Posted by RichJim > 2020-08-27 14:17 | Report Abuse

so we can only know the details of the ICPS after AGM right? coz i want to know if we can sell mother share after we buy ICPS, when can we convert ICPS to mother share n what will be the conversion rate.

Posted by InvestNotGamble > 2020-08-27 14:33 | Report Abuse

It is shown in the proposal, convert in 5 years, and no conversion rate, but u have to buy it at rm1 now and keep it for 5 years haha.

Posted by InvestNotGamble > 2020-08-27 14:34 | Report Abuse

SUNWAY BROKE 1.40 RESISTANCE!! ALL THE WAY UP NOW!!!

Posted by invest icon > 2020-08-27 15:19 | Report Abuse

If ICPS approve in coming EGM, Sunway WB will get some bonus and conversion price reduce to 1.32 after Oct 2023 due to capital enlarge. Take a look at Sunway WB

Posted by InvestNotGamble > 2020-08-27 16:16 | Report Abuse

1.41 NOW!!! See why I keep try hard to recommend sunway few days ago? I hope we all can earn some SAFE & BIG money from sunway through this reputable company!

The price is still very cheap now 1.41. Sure can hit 1.5 very soon. Sapu while you can yea.

Posted by makelittlemoney > 2020-08-27 16:18 | Report Abuse

sin ka lin... why when 1.28 u no come out promote

Posted by InvestNotGamble > 2020-08-27 16:37 | Report Abuse

@makelittlemoney Bro i'm pure investor studying fundamental and analyzing on facts, i'm not insider I dont know their financial performance in advance. It is still a risk before the quarter report is out, now that the quarter report is out all worries are gone. Now can sapu!

Posted by Kendo Ken Hz > 2020-08-27 20:48 | Report Abuse

All in, 2 soon, Chia buyback

Posted by ali baba > 2020-08-28 13:17 | Report Abuse

Would the ICPS plan works like this?

#1 - Dividend
Year1 = 5.25%
Year2 = 5.25%
Year3 = 5.25%
Year4 = 5.25% (mandatory conversion on the 1st 50%)
Year5 = 5.25% (mandatory conversion on the balance 50%)

#2 - And to convert, is there any fee to pay like 'Exercise Price'?

Posted by InvestNotGamble > 2020-08-28 13:49 | Report Abuse

@ali baba

No exercise price. Because you have to pay a RM1 in advance already for it.

Posted by invest icon > 2020-08-28 15:06 | Report Abuse

@Ali Baba, Conversion to Sunway is either 1:1 or 20% discount from Sunway price during fixing period, which ever is lower. Means, minimum 1 ICPS can convert to 1 Sunway share or more

Posted by ali baba > 2020-08-28 15:54 | Report Abuse

Many thanks InvestNotGamble and invest icon.
Cannot imagine that Sunway at year 2025 will still priced at RM1.00 and without any bonus share / share split exercise from now until then.

A few more questions.

#3 - These ICPS units, Are they trade-able the moment the units are issued?

#4 - If one has 1,000 units of Sunway, he / she will be entitled 200 units and this sure allotted right? Or we must wait for balloting?

#5 - With ICPS unit priced at RM1.00 and with dividend 5.25% per annum, Can i assume the following:-
1,000 units of ICPS at RM1.00
yr1 dividend receipt = RM 52.5
yr2 dividend receipt = RM 52.5
yr3 dividend receipt = RM 52.5
yr4 dividend receipt = RM 26.25 (only 50% because 50% of units will be converted to Sunway)
yr5 dividend receipt = RM 26.25 (only 50% because 50% of units will be converted to Sunway)
total dividend then is = RM 210.
Hence, the capital outlay for the ICPS is RM1,000 - RM210 = RM 790 (for 1,000units)
Is this understanding correct?

Posted by InvestNotGamble > 2020-08-28 16:23 | Report Abuse

no la u cannot count like that, 1000 u put FD in bank also will have interest. They ask money from u and lock down the fund, let them use for 5 years, of course need pay u interest. Yes the preferential share can be traded in market like warrant if i'm not wrong. So if sunway price go up, u can sell for profit also instead of holding for 5 years.

Posted by InvestNotGamble > 2020-08-28 16:25 | Report Abuse

If the proposed ICPS is rejected by the board, then share price will go up because last time after announcement a lot ppl scare dilution then throw sunway share, current share price already factorted in.

If ICPS success, the price will go up also, because a lot of big player and permanent sunway stakeholders won't want to lose out this chance and face dilution.

Conclusion, SAPU SUNWAY WHILE YOU CAN LA!!!

Posted by invest icon > 2020-08-28 16:38 | Report Abuse

@Ali Baba, ICPS will be listed for trade. Theorytically price quote will be not far from Sunway since is min 1:1 conversion. 1 ICPS right to subscribe is free for every 5 shares and you can sell it if you do not wish to subscribe before the expiry date. If you have 1000 units of ICPS, you are entitled to RM52.5 every year but paying out can be delay and accumulate if the management feels that is necessary. Buy delaying is very rare will affects Sunway's credit rating.

Posted by invest icon > 2020-08-28 16:42 | Report Abuse

@InvestNotGamble I see you really hard sell Sunway. But I like it cause it is truly good fundamental and potential company

Posted by invest icon > 2020-08-28 16:46 | Report Abuse

Don't forget to take a look at Sunway WB, If ICPS is approve, Conversion price will reduce to RM1.32 from Oct 2023 onwards and very likely will get about 8-10% free Warrant due to enlarge capital.

Posted by yameyamo > 2020-08-28 17:16 | Report Abuse

Finally

Posted by Kendo Ken Hz > 2020-08-28 17:25 | Report Abuse

Sunway has medical centers, but share prices is peanut, why , zero benefit from covid

Posted by InvestNotGamble > 2020-08-28 21:26 | Report Abuse

@invest icon yea i hard sell because i feel Sunway wasted at this price level. And all the things i say here is based on fact. Like you said, Sunway is really good fundamental and potential company at this price level is just unreasonable.

@Kendo Ken Hz sunway medical occupancy rate is <20% during mco, that's why lost making, but after June already improve to > 65% occupancy rate. Which is really good. So next quarter will see good profit by Sunway. That's why the share price is rising after the quarter report come out shows that Sunway is not really affected as expected by Covid. More income is coming in from property sector after project completion at china and UK.

A lot of ppl mistaken sunway for hotels and malls, their main income is actually from various diversified sectors including property, quarrying and building materials.

Posted by CKNG8291 > 2020-08-31 21:20 | Report Abuse

Is sunway issue dividend this QR ?

Posted by ali baba > 2020-09-01 13:40 | Report Abuse

Thanks again InvestNotGamble and invest icon.

Posted by MadameTan > 2020-09-01 20:43 | Report Abuse

I joined the party since 1.6 and I started small but gradually increase my purchase when the price falling until 1.30. Now my Sunway counter PnL is positive.
Looking forward to a positive outcome general meeting tomorrow and embrace towards a higher
TP.

Posted by ali baba > 2020-09-02 12:34 | Report Abuse

With the ICPS, will Sunway still issue dividend? It is counter productive right?

Posted by invest icon > 2020-09-02 15:56 | Report Abuse

Sunway dividend policy is minimum 20% from its core business PATMI. That means they will still pay out dividend

Posted by Pang > 2020-09-02 16:32 | Report Abuse

dividend x 2 per year

Posted by federerphong > 2020-09-02 22:52 | Report Abuse

May i know , the sunway warrant got any effect,after icps

Posted by AlfI3 > 2020-09-03 07:48 | Report Abuse

Eventhough AGM approved, it will take long time more to get d ex-date of the icps RI. Will tat possibly d mgmt decides to abort due to improved biz condi tat can eliminate dem frm cash call exercises?

Posted by jibbie > 2020-09-03 12:06 | Report Abuse

Any good news from AGM? anyone can share?

Posted by tankoksiong > 2020-09-03 21:16 | Report Abuse

从采矿与采石业起家的双威（SUNWAY,5211,主板工业产品服务组），如今已发展为大马其中一家业务多元化的财团，组合投资与业务存在协同作用，自2011年成功合并双威城与双威控股后，集团盈利处于上升轨道，通过策略性决策，继续严谨落实营运计划。

在已结束财政年，集团营业额从前期的54亿1016万令吉，减至47亿8027万令吉，虽然减少11.6%，不过归股东盈利增加18.9%。集团36%税后盈利来自产业发展与建筑组，其他组别，包括产业投资与产业信托、休闲业务、医药保健、贸易与制造业、采石业、建筑材料与投资控股，占64%。

以地区分布来说，双威税后盈利主要来自大马，接下来是中国，为集团第二大盈利贡献市场。基于集团盈利表现不俗，董事部宣布分发每股9.07仙股息，比2018年的7.12仙高。

2019财政年，集团在3个国家增购35英亩的土地，第一在新加坡的6.16英亩9年租赁地皮；在大马的土地收购集中在巴生河流域，2019年7至10月份别收购3块土地，即：位于哥打白沙罗的9.45英亩租赁地、位于珍珠武吉加里尔的11.77英亩永久契约地、位于旺沙玛朱的3.69英亩永久契约地。

双威已在中国天津完成双威花园第一和第二期计划，集团2019年9月13日以2亿5780万令吉，收购一块6.86英亩土地，土地总面积增至3347英亩，为期15年的计划，估计发展总值高达586亿令吉。

至于产业投资组，集团把双威大学与双威学院的土地和大厦脱售给旗下产业投资信托，并将投资收入转向其他领域。

此外，集团非产业相关业务，2019财政年继续成长，其中医药保健领域的“双威伟乐医药中心”，2019年9月开始营运，在12层的医院大楼，提供多边医药服务，这是集团医药保健扩充计划的重大里程碑，为集团综合产业发展计划的第三间医院。

采石组新成长支柱

与此同时，集团建筑组已成功移交布城计划的设计与建筑，这项计划是政府其中一项最大的办公大厦。除此之外，双威的采石组已逐渐成为集团新的成长支柱，包括以7010万令吉收购Blacktop工业公司的100%股权、以1亿2500万令吉收购Dolomite Granite Quarry公司，不过交易尚待完成。

放眼未来，集团将继续融入科技，为转型21世纪“永续智能城”的模式努力，集团也在怡保双威城、依斯干达双威城，复制同样的模式，期待在大马各地以智能科技，建立永续特色城镇与社区。

Posted by Investor 999 > 2020-09-03 21:34 | Report Abuse

有消息指出，产业大亨丹斯里谢富年掌控的双威（SUNWAY，5211，主板工业股），有意脱售医院业务20至25%股权部署上市，并已委任马银行（MAYBANK，1155，主板金融股）主理。

彭博社引述消息人士报道，交易估值至少达2亿5000万美元（约10亿3600万令吉）。

据了解，双威将会发售新股和脱售现有股权，并且已与潜在买家接洽。

消息人士也透露，售股所得将用来扩充医院，预计最快会在下个月达成无约束协议。

Posted by Tey Tey Shong Hui > 2020-09-04 04:40 | Report Abuse

双威又开始发光，双威个性超特别，花点时间多了解才能在双威久留。

Posted by invest icon > 2020-09-04 09:15 | Report Abuse

Sunway Bhd (5211) – Healthcare re-rating?

Sunway could see some upside if research houses start raising the valuation of its healthcare business.

Bloomberg reported today that Sunway is looking to sell a 20-25% stake in its healthcare unit that could fetch at least USD250 mil.

That means:

If a 20% stake is worth USD250 mil, 100% stake is worth USD1.25 bil.
If a 25% stake is worth USD250 mil, 100% stake is worth USD1 bil.
USD1 bil is about RM4.15 bil.

That is much higher than the valuations given by some research houses, such as:

Kenanga IB: RM1,788 mil
Hong Leong IB: RM1,734 mil
Affin Hwang IB: RM1,800 mil
UOB Kay Hian: RM1,250 mil

Among the four above, Affin Hwang gave the highest valuation of RM1.8 bil.

However, using that USD1 bil (RM4.15 bil) valuation, that’s still a surplus of RM2.35 bil or 42 sen per share (based on fully diluted no. of shares).

42 sen is equivalent to 30% of Sunway’s share price of RM1.40.

Posted by dollardollarbill > 2020-09-04 09:45 | Report Abuse

https://klse.i3investor.com/blogs/dollardollarbill/2020-09-03-story-h1513316114-Sunway_Bhd_5211_Healthcare_re_rating_bill.jsp

Posted by dollardollarbill > 2020-09-04 09:49 | Report Abuse

Hong Leong IB came out with report today too...

Posted by dollardollarbill > 2020-09-04 09:50 | Report Abuse

http://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=15758

Posted by InvestNotGamble > 2020-09-04 10:22 | Report Abuse

What did i say? Sunway is unlocking it's value now!

Posted by InvestNotGamble > 2020-09-04 12:53 | Report Abuse

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3085515

Sunway healthcare unit stake sales confirmed. Time for Sunway to fly!!! Crazy value unlocked even before IPO of their medical line.

Posted by Valgrovest > 2020-09-04 14:21 | Report Abuse

Yes, this could potentially unlock the value in Sunway.

Posted by Valgrovest > 2020-09-04 14:28 | Report Abuse

https://www.theedgemarkets.com/article/sunways-healthcare-unit-divestment-plan-positive-move-%E2%80%94-hlib-research

Hong Leong Investment Bank very bullish on Sunway healthcare plan .....is Sunway going to limit up soon?

Posted by vinc3nt > 2020-09-04 15:03 | Report Abuse

existing warrant holder will get new warrant