KUALA LUMPUR: RHB research is upbeat about Sunway Bhd's successful tender bid for another piece of land at Plantation Close, Tengah, in Singapore.
According to the research house, this should anchor its presence in an area that stretches from Iskandar Malaysia to Jurong East in Singapore.
"We are upbeat about Sunway's successful tender bid for another piece of land at Plantation Close, Tengah, in Singapore.
"As mentioned previously, the land is near the proposed Kuala Lumpur-Singapore High Speed Rail (HSR) station at Jurong East.
Sunway remains a sector top pick, given its strategic presence in the southern region of West Malaysia, and the imminent listing of its healthcare unit, it said in a note today.
As such, RHB has maintained its buy" rating on Sunway at RM2.73, with a higher target price of RM3.45 from RM3.00.
The research house said Sunway and Hoi Hup Realty will have a combined nine acres in Plantation Close, Tengah.
This should enable the consortium to come up with a better design and concept for the development there, it said.
The land is surrounded by amenities like schools, a hospital, a shopping mall, the Chinese Garden MRT Station, and future Tengah Plantation and Tengah Park MRT Stations.
"We also highlight that Tengah Plantation is 6km away from the proposed Jurong East high-speed rail terminal in Singapore.
"Given the improving property market sentiment, we narrow our discount to revalued net asset value to 30 per cent (from 45 per cent) for the property development segment."