18 July 2025
Sunway (SWB MK): Replenishing Landbank In Singapore; BUY
Property | Real Estate
- Maintain BUY, with new TP of MYR5.81 from MYR5.79, 16% upside. We are positive with Sunway’s latest land acquisition at Lorong Chuan in Singapore, following the successful launch of the first Tengah Plantation Close project (Novo Place) in end 2024. The Lorong Chuan project is expected to have a GDV of SGD1.4-1.5bn, targeting mainly at the mid-range market segment. We think the project will be well received upon its launch in 2H26.
- New land in Singapore. Sunway announced that the Urban Redevelopment Authority had awarded a parcel of land measuring 15,831.5 sqm (or 3.91 acres) at Chuan Grove, Singapore at a price of SGD703.6m to Sing Holdings (SING SP, NR) and Sunway. This land has a 99-year lease term, and is planned for residential development. Both SING and Sunway will have an equity interest of 65% and 35%. Sunway will fund the acquisition via internal funds and borrowings.
- Expect encouraging take-up. This new land is within walking distance to the Lorong Chuan MRT station, and only one stop away from Bishan and Serangoon MRT interchanges. Nearby amenities include NTP+ mall, Junction 8, and a number of education institutions. Assuming an ASP of SGD2,500-2,700 psf, our estimated GDV for this project is SGD1.4-1.5bn. We think the project will be well received given its location and price point, which should suit the demand from the mid-range market segment.
- Revise up FY27F earnings. We raise our FY27F earnings by 5% as the project will be launched in 2H26. Meanwhile, FY25F-27F earnings will be underpinned by strong unbilled sales of MYR4.06bn and outstanding construction orderbook of MYR6.6bn.
- ESG. Sunway has an ESG score of 3.4 out of 4. Our TP includes an 8% ESG premium applied over its SOP-based intrinsic value.
Share Performance (%)
| YTD | 1m | 3m | 6m | 12m | |
|---|---|---|---|---|---|
| Absolute | 4.2 | 5.3 | 13.7 | 18.8 | 20.5 |
| Relative | 11.6 | 4.7 | 11.2 | 21.7 | 27.4 |
| 52-wk Price low/high (MYR) | 3.62 – 5.02 | ||||
Forecasts and Valuation
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total turnover (MYRm) | 6,140 | 7,882 | 8,352 | 9,008 | 10,022 |
| Recurring net profit (MYRm) | 816 | 963 | 1,029 | 1,159 | 1,343 |
| Recurring net profit growth (%) | 20.6 | 18.0 | 6.8 | 12.7 | 15.9 |
| Recurring EPS (MYR) | 0.14 | 0.15 | 0.15 | 0.17 | 0.20 |
| DPS (MYR) | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 |
| Recurring P/E (x) | 36.32 | 34.14 | 32.28 | 28.93 | 25.22 |
| P/B (x) | 2.14 | 2.19 | 2.13 | 2.06 | 1.98 |
| Dividend Yield (%) | 1.0 | 1.2 | 1.3 | 1.4 | 1.5 |
| Return on average equity (%) | 5.6 | 8.0 | 6.7 | 7.3 | 8.0 |
| Net debt to equity (%) | 43.4 | 37.7 | 39.5 | 35.8 | 33.6 |
Overall ESG Score: 3.4 (out of 4)
E Score: 3.3 (EXCELLENT)
S Score: 3.3 (EXCELLENT)
G Score: 3.7 (EXCELLENT)
Please refer to the ESG analysis on the next page
Emissions And ESG
Trend analysis
In FY22, Scope 1 emissions: Increased to 65,329 tonnes of CO2 equivalents (FY21: 53,765 tonnes of CO2 equivalents) and Scope 2 increased to 55,813tn (FY21: 42,307 tonnes of CO2 equivalents).
| Emissions (tCO2e) | Dec-22 | Dec-23 | Dec-24 | Dec-25 |
|---|---|---|---|---|
| Scope 1 | 65,329 | na | na | na |
| Scope 2 | 55,813 | na | na | na |
| Scope 3 | 64,603 | na | na | na |
| Total emissions | 185,745 | na | na | na |
Source: Company data, RHB
Latest ESG-Related Developments
Sunway is a constituent of FTSE4Good Bursa Malaysia Index. It aims to be carbon neutral by 2050.
ESG Unbundled
Overall ESG Score: 3.4 (out of 4)
Last Updated: 20 May 2025
E Score: 3.3 (EXCELLENT)
Sunway City is a Green Building Index (GBI) certified township. The company managed to avoid 40,131 tonnes of CO2e from 2015-2019, and 1% of its electricity is from renewable sources (in 2019). Its main townships also have more than 40% open space, with greenscapes and bluescapes.
S Score: 3.3 (EXCELLENT)
Sunway has made donations to aid the underserved communities in the B40 group, people with disabilities, youth, women, children and senior citizens. The Good Run in Oct 2019 managed to raise MYR275k to support medical treatment costs for cancer patients of the B40 group.
G Score: 3.7 (EXCELLENT)
56% of board members are independent. Sunway has an in-house investor relations team that is easily accessible, and holds investor meetings, embodying good transparency and disclosure practices.
ESG Rating History
The company has maintained a consistent ESG rating of 3.4 over the past two years.
| Date | Rating |
|---|---|
| Jul-23 | 3.4 |
| Sep-23 | 3.4 |
| Nov-23 | 3.4 |
| Jan-24 | 3.4 |
| Mar-24 | 3.4 |
| May-24 | 3.4 |
| Jul-24 | 3.4 |
| Sep-24 | 3.4 |
| Nov-24 | 3.4 |
| Jan-25 | 3.4 |
| Mar-25 | 3.4 |
| May-25 | 3.4 |
| Jul-25 | 3.4 |
Financial Exhibits
Company Profile
Sunway is a well-known developer in the Klang Valley. Its flagship project – Bandar Sunway – is a well-established integrated township. The company has successfully transformed a mining land to a matured residential and commercial cluster.
Valuation basis
20% discount to property RNAV, 13x P/E for trading/building material division, 26x EV/EBITDA for healthcare division, and 0% holding co discount.
Key drivers
New property sales, disposal of investment properties.
Key risks
Weaker-than-expected market conditions.
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Recurring EPS | 0.14 | 0.15 | 0.15 | 0.17 | 0.20 |
| EPS | 0.12 | 0.18 | 0.15 | 0.17 | 0.20 |
| DPS | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 |
| BVPS | 2.33 | 2.28 | 2.34 | 2.42 | 2.52 |
| Return on average equity (%) | 5.6 | 8.0 | 6.7 | 7.3 | 8.0 |
| Return on average assets (%) | 2.7 | 3.8 | 3.2 | 3.5 | 3.8 |
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Recurring P/E (x) | 36.32 | 34.14 | 32.28 | 28.93 | 25.22 |
| P/B (x) | 2.1 | 2.2 | 2.1 | 2.1 | 2.0 |
| Dividend Yield (%) | 1.0 | 1.2 | 1.3 | 1.4 | 1.5 |
| EV/EBITDA (x) | 46.29 | 38.61 | 34.65 | 30.51 | 28.04 |
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total turnover | 6,140 | 7,882 | 8,352 | 9,008 | 10,022 |
| Gross profit | 1,514 | 2,020 | 2,224 | 2,404 | 2,690 |
| EBITDA | 806 | 1,031 | 1,179 | 1,343 | 1,477 |
| Depreciation and amortisation | (141) | (144) | (144) | (152) | (162) |
| Operating profit | 664 | 887 | 1,034 | 1,191 | 1,316 |
| Net interest | (68) | (6) | (57) | (53) | (46) |
| Pre-tax profit | 993 | 1,524 | 1,449 | 1,633 | 1,919 |
| Taxation | (138) | (242) | (304) | (343) | (422) |
| Reported net profit | 738 | 1,154 | 1,029 | 1,159 | 1,343 |
| Recurring net profit | 816 | 963 | 1,029 | 1,159 | 1,343 |
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Change in working capital | (449) | (444) | (559) | (59) | (170) |
| Cash flow from operations | 426 | 615 | 535 | 1,167 | 1,118 |
| Capex | (455) | 0 | (594) | (369) | (720) |
| Cash flow from investing activities | (159) | 209 | (434) | (110) | (371) |
| Dividends paid | (295) | (395) | (433) | (470) | (509) |
| Cash flow from financing activities | 1,087 | 1,114 | (526) | (563) | (600) |
| Cash at beginning of period | 1,959 | 2,314 | 4,356 | 3,977 | 4,408 |
| Net change in cash | 1,353 | 1,938 | (425) | 494 | 147 |
| Ending balance cash | 3,312 | 4,253 | 3,931 | 4,471 | 4,555 |
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total cash and equivalents | 3,140 | 4,876 | 4,498 | 4,929 | 5,032 |
| Tangible fixed assets | 17,980 | 18,020 | 18,469 | 18,686 | 19,244 |
| Intangible assets | 454 | 442 | 442 | 442 | 442 |
| Total other assets | 99 | 99 | 372 | 604 | 813 |
| Total assets | 28,613 | 31,510 | 32,770 | 34,278 | 36,121 |
| Short-term debt | 6,018 | 5,972 | 5,972 | 5,972 | 5,972 |
| Total long-term debt | 3,633 | 4,905 | 5,096 | 5,215 | 5,268 |
| Total liabilities | 13,615 | 15,573 | 16,120 | 16,809 | 17,664 |
| Shareholders’ equity | 13,855 | 14,990 | 15,587 | 16,275 | 17,109 |
| Minority interests | 1,143 | 947 | 1,063 | 1,194 | 1,347 |
| Total equity | 14,998 | 15,938 | 16,650 | 17,469 | 18,457 |
| Total liabilities & equity | 28,613 | 31,510 | 32,770 | 34,278 | 36,121 |
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Revenue growth (%) | 18.2 | 28.4 | 6.0 | 7.9 | 11.3 |
| Recurring net profit growth (%) | 20.6 | 18.0 | 6.8 | 12.7 | 15.9 |
| Recurrent EPS growth (%) | 19.1 | 6.4 | 5.8 | 11.6 | 14.7 |
| Gross margin (%) | 24.7 | 25.6 | 26.6 | 26.7 | 26.8 |
| Recurring net profit margin (%) | 13.3 | 12.2 | 12.3 | 12.9 | 13.4 |
| Dividend payout ratio (%) | 40.0 | 34.2 | 42.0 | 40.6 | 37.9 |
Figure 1: Location of the land
The report includes a map indicating the location of the new land parcel, Chuan Grove. It is situated in a central area of Singapore, in close proximity to Bishan, Serangoon, and Toa Payoh. Key transport links like the PIE expressway and nearby MRT stations (Lorong Chuan, Bishan, Serangoon) are highlighted, indicating excellent connectivity.
Figure 2: RNAV estimate
| Developments | Remaining Landbank (acre) | Remaining GDV (MYR m) | Effective stake | NPV @ 9% |
|---|---|---|---|---|
| Selangor/KL | ||||
| Sunway Damansara | 13.19 | 938.30 | 60% | 75.5 |
| Sunway South Quay | 32.90 | 2,486.70 | 100% | 320.7 |
| Sunway Monterez | 4.40 | 38.00 | 60% | 2.8 |
| Sunway Semenyih | 523.11 | 728.59 | 70% | 47.5 |
| Sunway Cheras | 2.92 | 4.50 | 100% | 0.4 |
| Sunway Duta | 3.16 | 120.00 | 60% | 6.4 |
| Sunway Resort City | 7.7 | 660.00 | 100% | 96.0 |
| Sunway Living Space (Sri Hartamas) | 5.09 | 850.00 | 100% | 85.7 |
| Sunway Velocity 2 | 1.01 | 80.00 | 60% | 4.3 |
| Sunway Velocity 3 | 5.50 | 1,200.00 | 60% | 81.2 |
| New land in Cochrane | 5.52 | 1,150.00 | 100% | 134.9 |
| Sunway Tower KL 1 | 0.92 | 240.00 | 100% | 20.4 |
| Sunway Termuning | 31.20 | 13.59 | 80% | 0.8 |
| Mont Putra, Rawang | 158.00 | 156.00 | 100% | 13.2 |
| Kelana Jaya | 13.96 | 860.00 | 100% | 70.0 |
| Sunway Belfield | 1.65 | 100% | ||
| Jernih Residence, Kajang | 2.44 | 264.00 | 60% | 12.4 |
| USJ 1 | 14.80 | 1,400.00 | 100% | 114.1 |
| Mutiara Bukit Jalil | 8.02 | 697.00 | 100% | 54.6 |
| Kuang land 1 & 2 | 344.63 | 2,700.00 | 70% | 131.9 |
| Dengkil (Emerald Tycoon) | 61.23 | 813.90 | 100% | 40.9 |
| Taman Taynton (next to Sunway Alishan) | 17.58 | 3,200.00 | 100% | 151.7 |
| Seremban Sentral | 20.81 | 2,200.00 | 100% | 122.7 |
| Perak | ||||
| Sunway City Ipoh | 324.1 | 3,746.38 | 96% | 502.3 |
| Penang | ||||
| Sunway Wellesley, Bukit Mertajam | 50.66 | 710.47 | 100% | 68.9 |
| Paya Terubong | 19.79 | 1,500.00 | 100% | 133.3 |
| S’pore | ||||
| Terra Hills Pasir Panjang | 4.79 | 2,873.00 | 30% | 76.6 |
| The Continuum Tanjong Katong | 6.06 | 7,480.00 | 30% | 114.3 |
| Tengah Plantation Close 1 | 4.06 | 2,591.50 | 35% | 69.9 |
| Tengah Plantation Close 2 | 5.00 | 2,982.00 | 35% | 73.7 |
| Tampines mixed-use | 5.80 | 4,995.00 | 35% | 126.3 |
| Lorong Chuan | 3.91 | 4,950.00 | 35% | 135.5 |
| Johor | ||||
| Bukit Lenang | 30.48 | 850.00 | 80% | 87.9 |
| Medini | 530.44 | 10,505.00 | 60% | 604.1 |
| Pendas | 1,071.47 | 18,000.00 | 100% | 1,217.7 |
| Bukit Chagar, RTS mixed-use development | 4.23 | 2,600.00 | 100% | 223.9 |
| Johor Bahru JV | 15.50 | 4,000.00 | 60% | 195.1 |
| China | ||||
| Tianjin Phase 3 | 5.87 | 688.80 | 60% | 29.4 |
| Unbilled sales | 598.0 | |||
| TOTAL | 4,189.19 | 99,618.59 | 5,885.16 | |
| Investment properties | Est. market value (MYR m) | Book value (MYR m) | Equity interest | Net surplus (MYR m) |
|---|---|---|---|---|
| Monash University Campus | 375.0 | 375.0 | 100% | 0 |
| Monash U Residence | 465.0 | 465.0 | 100% | 0 |
| Sunway Geo Tower | 180.0 | 112.0 | 100% | 68.0 |
| Sunway Hotel Georgetown | 60.0 | 37.6 | 100% | 22.4 |
| Sunway Velocity Mall | 3,201.0 | 908.5 | 59% | 1,352.6 |
| Sunway Geo Avenue | 100.0 | 47.0 | 100% | 53.0 |
| Subtotal | 7,328.11 | |||
| Shareholders’ equity (ex cons. & healthcare) | 10,433.11 | |||
| Total | 17,761.22 | |||
| Discount to Property RNAV | 20% | |||
| Discounted Property RNAV | 14,208.98 |
| Other divisions | Market value (MYR m) | Est. FY25 earnings (MYR m) | PE target (x) | Equity value (MYR m) |
|---|---|---|---|---|
| 40.9% Sunway REIT | 2,899.5 | 2,899.54 | ||
| 54.6% Sunway Construction | 3,974.3 | 3,974.35 | ||
| Others | 150 | 14 | 2,100.00 | |
| 84% Sunway Healthcare | Est. FY25 EBITDA: 569.6 | EV/EBITDA (x): 26 | Equity value: 11,851.44 |
| Total | 35,034.31 |
| ESOS proceeds | 151.21 |
| Warrants conversion @ MYR1.35 | 227.26 |
| Total RNAV | 35,412.78 |
| Holding company discount | 0% |
| Discounted RNAV | 35,412.78 |
| Share base (mil) | 6,588.38 |
| Intrinsic value | 5.38 |
| ESG premium | 8% |
| TP (MYR) | 5.81 |
Recommendation History
| Date | Recommendation | Target Price | Price |
|---|---|---|---|
| 2025-05-09 | Buy | 5.79 | 4.72 |
| 2025-02-27 | Buy | 5.77 | 4.73 |
| 2025-02-13 | Buy | 5.77 | 4.62 |
| 2024-11-26 | Buy | 5.75 | 4.94 |
| 2024-07-18 | Buy | 5.00 | 4.09 |
| 2024-05-22 | Buy | 4.00 | 3.66 |
| 2024-02-22 | Buy | 3.53 | 2.80 |
| 2024-02-16 | Buy | 3.45 | 2.76 |
| 2024-01-07 | Buy | 3.00 | 2.22 |
| 2023-11-22 | Buy | 2.65 | 1.94 |
| 2023-09-28 | Buy | 2.67 | 1.99 |
| 2023-08-17 | Buy | 2.65 | 1.92 |
| 2023-01-12 | Buy | 2.06 | 1.61 |
| 2022-11-28 | Buy | 2.06 | 1.58 |
| 2022-08-24 | Buy | 2.06 | 1.66 |
RHB Guide to Investment Ratings
Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage
Investment Research Disclaimers
RHB has issued this report for information purposes only. This report is intended for circulation amongst RHB and its affiliates’ clients generally or such persons as may be deemed eligible by RHB to receive this report and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. This report is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments.
This report may contain forward-looking statements which are often but not always identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and statements that an event or result “may”, “will” or “might” occur or be achieved and other similar expressions. Such forward-looking statements are based on assumptions made and information currently available to RHB and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievement, expressed or implied by such forward-looking statements. Caution should be taken with respect to such statements and recipients of this report should not place undue reliance on any such forward-looking statements. RHB expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.
