Stock Picks #4
Sunway Berhad (SUNWAY)
Week high : RM 2.46 (Up 16 sen – 7%)
Sunway
Construction was awarded Package V4 for works between Section 17 in
Petaling Jaya and the Semantan Portal, where the alignment will continue
underground.
Market
reacted positively as the MRT tender award would generate additional
revenue to Sunway Berhad and this could potentially boost profits, even
though the exact worth of the contract awarded to Sunway Berhad is not
publicly known.
Before you decide to splurge on Sunway stocks, do take note that on 24 April, AmResearch reports that Sunway’s property division is feeling the impact of the 70% loan-to-value ruling introduced in November last year.
This
is because Sunway’s pricing for its products has always been on the
high side and 70% of its planned launches are priced at least RM1
million per unit. Consequently, AmResearch believes that it will be
challenging for Sunway to meet its RM1.9 billion sales target this year
on weaker sales since early 2012.
SUNWAY stock price surged 7% or 16 sen within the day on 9 May to a high of RM 2.46 and closed at RM 2.33 for the week.
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