Sunway’s earnings to pick up in coming quarters

KUALA LUMPUR: Sunway Bhd’s (Sunway) earnings have been projected to pick up in the coming quarters while the group’s launches are expected to pick up pace post-election.

Sunway’s first quarter of 2018 (1Q18) core net profit of RM121.9 million, up 14 per cent from the corresponding period of the previous year, was found to be generally within analysts’ expectations.

Looking ahead, Affin Hwang Investment Bank Bhd (AffinHwang Capital) expected Sunway’s earnings to pick up in the coming quarters on higher contributions from the property-development (RM947 million unbilled sales) and construction segments (RM6.1 billion outstanding orderbook).

“We continue to like Sunway for its integrated propertydevelopment business model, complemented by its healthcare and education businesses.

“Key risks to our positive view are weaker-thanexpected property sales and low construction contract wins,” Affin Hwang said in its results note on the group.

According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), Sunway’s new launches were held back running up to the 14th General Election (GE14)

“Post-election we expect launches to pick up pace,” it said.

Kenanga Research believed management will continue with Sunway’s planned launches of RM2 billion after the change in government.