use development contracts near Bukit Chagar — Maybank IB
Maybank Investment Bank projects that Sunway Construction Group could secure RM1 billion in new contracts for the Bukit Chagar RTS Link development. This potential win is expected to boost the company's profitability as the region prepares for the transit system's opening.
Why it matters
Large-scale infrastructure projects in Johor Bahru are significantly influencing property demand and construction sector valuations in Malaysia.
BURSA SGX Home Stock Focus Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Sept 10): Sunway Construction Group Bhd (KL: SUNCON ) could win an estimated RM1 billion in podium and tower contracts for an integrated mixed-use development at the Bukit Chagar RTS Link, Johor Bahru, according to Maybank Investment Bank.
The research house noted that the potential win came from a joint venture development between its parent company, Sunway Bhd (KL: SUNWAY ), and Mass Rapid Transit Corporation (MRT Corp), which could increase Sunway Construction’s overall net profit by about RM60 million.
Consequently, Maybank IB mantained its “buy” call and RM9.62 target price, pegged to 17.7 times the financial year ending Dec 31, 2027 (FY2027) estimated price earnings.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in