Axiata Group : Dividends now mired in Nepali CGT issue BUY IJM Corp : Acquiring 37-acre land in Seberang Perai BUY

STOCK FOCUS OF THE DAY

Sunway Construction : Leading construction pure play in town                   HOLD

The largest construction pure play in the country, Sunway Construction (SunCon) is an integrated construction company which offers a comprehensive range of services providing end-to-end construction solutions including design and build services and precast supplies. The construction sector in Malaysia continues to grow robustly with the ongoing infrastructure development, in line with the nation’s aspiration to become a developed nation by the year 2020. Among mega infrastructures projects in the pipeline are the East Coast Rail Line (ECRL), High-Speed Rail (HSR), MRT Line 3, LRT3, BRT and Pan Borneo Highway (Sabah). The booming industry is expected to attract local and foreign construction players including SunCon to bid and undertake these infrastructure projects.

Being the largest construction pure play, SunCon is poised to be the preferred contractor to undertake mega and scalable projects domestically and internationally. We project its FY17F/FY18F earnings to grow 13%/25% underpinned by strong outstanding order book of RM4.6bil, strong earnings visibility over the long term and its position as the leading construction pure play with a proven track record which enables it to continue bidding for large-scale projects from existing and potential clients. We initiate coverage on SunCon with a HOLD call and FV of RM2.01based on 15x FY18F EPS, in line with our benchmark forward PE of 14-16x for large-cap construction listed companies.

Others :

Axiata Group : Dividends now mired in Nepali CGT issue                                BUY

IJM Corp : Acquiring 37-acre land in Seberang Perai                                          BUY

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Prestariang,Willowglen MSC,DRB-HICOM,Pentamaster Corporation  

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