HLIB, Kenanga positive on Sunway’s property disposal

KUALA LUMPUR (Dec 26): Sunway Bhd’s disposal of academic buildings for RM550 million to Sunway Real Estate Investment Trust (Sunway REIT) is seen as positive by analysts who have raised their target prices on Sunway.

Hong Leong Investment Bank (HLIB) retained its “buy” rating on Sunway at RM1.40 and raised its target price to RM2.18 (from RM2.13), while Kenanga Investment Bank maintained its “market perform” call and raised its target price to RM1.65 from RM1.60 previously.

On Dec 24, Sunway REIT said it had acquired lands and buildings, namely the Sunway University property, worth RM550 million from Sunway Destiny Sdn Bhd, a wholly-owned subsidiary of Sunway.

“We are positive on the disposal as it unlocks the value of the property at 1.13 times book value and increases our standard operating procedure by 2.3%. The disposal will enable Sunway to reinvest its capital into other core business activities. Besides, the property would also generate rental income to Sunway via the 40.9%-owned REIT,” HLIB said in a note today.

This would also lower Sunway’s net gearing, said HLIB, to 0.39x post disposal, from 0.46x as at 3QFY19. — theedgemarkets.com

Click here for more property stories.

Kongsikan Sekiranya Bermanfaat...
BACA JUGA:  Abdul Wahid Omar retires as Amanah Harta Tanah PNB chairman

Leave a Reply

Your email address will not be published. Required fields are marked *