Sunway Construction

[winston]

not vested

Another nice dividend surprise moderates slowing job wins

Downgrade to HOLD and cut TP to MYR5.63 (-16%) SCGB’s earnings were within our and consensus expectations but dividends outperformed again on a 23sen special DPS.

That said, new job wins in 3Q25 underwhelmed.

Thus, we cut our earnings estimates by 3-22%.

Ascribing an unchanged 24x FY26E PER (+1 SD to long term mean), we cut our TP to MYR5.63 from MYR6.72 and downgrade SCGB to HOLD from BUY.

Separately, our proprietary ESG score for SCGB is trimmed to 70/100 from 72/100 on higher GHG emissions and energy consumed.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/499661.pdf

[winston]

not vested

3Q25: Within Expectations; Positive Dividend Surprise

3Q25 earnings in-line with our expectations but surpassed consensus’, making up 76% and 85% of ours and consensus’ full-year estimates.

Positive surprise on special dividends, bringing 3Q25 dividends to 29.25 sen and 9M25 dividends to 41.5 sen, which implies lush dividend yield of 7.2%.

Maintain HOLD and target price of RM6.27, which implies 22x 2026F PE (+1SD above five-year mean of 18x).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

Another gift before Christmas

Maintain HOLD call and MYR5.63 TP Fresh after SCGB secured its first major job win of MYR570m after a dry spell of almost 7 months, it secured another major job win of MYR386m.

YTD job wins stand at MYR4.9b or 98% of our FY estimate and orderbook stands at MYR6.4b.

SCGB hopes to bag 1 more data centre job and 1 more internal job before FY25E is through.

We maintain our earnings estimates, HOLD call and MYR5.63 TP on 24x FY26E P/E pending more job wins.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/505182.pdf

[winston]

not vested

Chasing The Golden Hours

At a virtual meeting with management yesterday, we highlighted our optimism on Suncon’s 2026 outlook.

The group’s robust orderbook replenishment and strong DC tender pipelines remain as key catalysts.

Implied dividend yield of 5.3-5.5% for 2026-27 is also appealing, based on our 100% dividend payout assumptions.

We also see room for further capital management upside.

Maintain BUY and target price of RM6.66, which implies 22x 2026F PE (+1SD above five-year mean of 18x).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email