HLIB research expects a re-rating of Sunway with healthcare listing and Sunway Iskandar development

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) research anticipates a re-rating of Sunway Bhd with its upcoming healthcare listing and robust development in Sunway Iskandar.

It has a "Buy" call on the stock, with a higher target price of RM3 from RM2.76.

The firm said conversations on Sunway will be centred around the listing of its healthcare segment as the timeline for Sunway to list the segment, within the next two to three years, draws closer.

"We believe the segment upon listing should be able to fetch a valuation premium given its competitive advantage," it said.

Other than this, HLIB said the group's Sunway Iskandar township development is also gathering pace.

Sunway plans a new industrial park in Sunway City Iskandar Puteri with over RM8 billion gross development value through a joint venture with Equalbase.

It thinks investors should view Sunway's Iskandar development holistically as it is not only activating the residential component of the township, but also industrial, commercial and hospitality segments as well.

"These assets will allow the group to participate in the long term growth and the increasing vibrancy of Iskandar Malaysia, providing the group with diverse income streams from property development, property investment, hospitality, and healthcare," HLIB research said.


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