Monday, March 23, 2015

Next for Sunway

It should play catch up given that it is embarking on a value unlocking plan to list its construction arm, the Sunway Construction Group.

Although property and property relayed earnings made up 58% of financial year 2014 net earnings, Sunway now (March 2015) has a different angles as it offers investors an alternative for exposure to the construction sector.

The construction segment contributed about rm120 million or 20% of profit after tax and minority interest in FY2014, an earnings base that is almost equivalent to that of WCT Holdings Bhd.

SCG is one of the largest construction companies in Malaysia and by revenue size, it will be the largest listed pure play construction company upon listing.

Its construction order book currently (March 2015) stands at rm3 billion or which 53% comprises external jobs, 37% in house works and 10% precast contracts.

It also has exposure to the MRT1 and LRT jobs, which are among the key infra developments that the government has decided to maintain in the revised Budget 2015.

With these exposures, Sunway is in a better position to bid for more MRT2 jobs going forward.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.