SUNWAY – Fundamental Analysis (27 May 2015)

SUNWAY Analysis:-

Excel – http://1drv.ms/1GD9LdV

Notes – http://tinyurl.com/kxx3ezv

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.431) – Fair value 4.07 (Fair Value Uncertainty: HIGH)
        • R4Q (EPS: 0.427) – Fair value 4.03 (Fair Value Uncertainty: HIGH)
      • Forward:
        • FY15 (EPS: 0.33) – Fair value 3.11 (Fair Value Uncertainty: HIGH)
        • FY16 (EPS: 0.333) – Fair value 3.14 (Fair Value Uncertainty: HIGH)
      • EPS applied to reach the current stock price (3.52): 0.373
  • FY15Q1 revenue of RM1.1bn showed a growth of 3.3% yoy mainly due to improved performance from all business segments except property development segment. PATAMI margin during the quarter was 13.8%, an improvement of 3.7-ppts yoy from 10.1% in FY14Q1.
    • The segment showed a decline of 18.7%, mainly due to slower progress billings from local projects, as well as the completion of Sunway Nexis in Sunway Damansara in 4QFY14.
  • Sunway Construction (SCG) listing likely to be in Jun-15.
  • In the long term, the consistency of the Company in meeting earnings target and dividend payment should support its share price.
  • On the other hand, in view of slowdown in property industry and cooling off in Iskandar area, even if SUNWAY aims to achieve a similar RM1.7b new sales, I am not so optimistic with the industry outlook.

Latest Financial – Q1 2015 Financial Report (26 May 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4751569

At the time of writing, I did not own shares of SUNWAY.

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