Earnings, dividends, and job wins all beat our expectations. Reflecting higher annual job wins of RM5.5b (RM4.5b previously) and dividend payout ratio of 70% (50% previously), we raise our earnings per share estimates by 6-23% and lift dividend per share estimates by 48-68%. Accounting for higher earnings growth and dividend yields, we peg a higher FY25E price-to-earnings (PER) of 24x or +1 standard deviation (SD) to 12M forward (PER) ratio mean (from 21x or +0.5 SD to 12M forward PER mean). On dividends, Sunway Construction Group Bhd stated that it does not need to retain much cash on its balance sheet, as not many of its customers have requested deferred payment schemes. SCGB also wishes to raise its ROAE going forward. Upgrade to Buy with a higher target price of RM5.24 (+26%). – Maybank Investment Bank Bhd (May 21, 2025)
(Calls by analysts tracked by Bloomberg: 15 Buy, 1 Hold, 1 Sell; Consensus target price: RM5.22)
The post Sunway Construction upgraded to Buy, target price raised to RM5.24 appeared first on The Malaysian Reserve.
