Construction and Materials MALAYSIA October 5, 2011 Sunway Bhd SWB MK / SWAY.KL Current RM1.87 SHORT TERM (3 MTH) LONG TERM Market Cap Avg Daily Turnover Free Float Target RM2.68 Previous Target NA US$754.5m US$1.40m 40.1% RM2,417m RM4.10m 1,293 m shares Up/downside 43.32% Convicti on Notes from the Field Size does matter The merged Sunway group offers value, not just because of its share price decline but also the potential synergies from more in-house construction of its property projects. We also like the growth prospects for its construction division, which could clinch more ETP/10MP jobs. Sunway offers exposure to Malaysia’s stocks under our coverage. It is rising construction activities. It is driven by ETP and 10MP projects as Sharizan Rosely Malaysia also an integrated property group well as ongoing in-house property T (60) 3 20849864 that enjoys recurring income from development projects. Sunway’s E
[email protected] property investments and REITs. We construction unit specialises in begin coverage with an building, civil and infrastructure Company Visit Expert Opinion OUTPERFORM, pegging our target works, both for the public and price to a 20% discount to its RNAV. private sectors. With its bigger size Channel Check Customer Views and balance sheet, the group can Potential synergies hold its own among the big “The merger aims to Post merger, Sunway has a fairly construction boys in the battle for create bigger entity for similar business profile as the bigger large-scale jobs, having been business scale, realize construction boys, with property and shortlisted for the KVMRT project.