KUALA LUMPUR (Oct 15): AmInvestment Bank Research maintained its “Buy” call on Sunway Bhd (Sunway) at RM1.46 with a lower fair value of RM1.65 (from RM1.71), based on SOP valuation.

In a note today, the research house said it reduced its FY18 and FY19 earnings forecasts to RM576.2 million (-6.5%) and RM590.5 million (-11.2%) respectively; and introduced our FY20 earnings forecast at RM612.1 million.

AmInvestment said Sunway was reclassified from the Properties to the Trading/Services sector in Bursa Malaysia on June 16, 2017 to reflect its strategic ambition to grow into non-property related business.

It said that at present, Sunway’s businesses are diversified mainly into: i) integrated property (property development, property investment, hospitality & leisure); ii) construction; and iii) investment (trading & manufacturing, quarry & building materials, healthcare and others).

“We believe the outlook for Sunway shall remain stable premised on its strong unbilled sales of RM1.4 billion, a robust outstanding order book of RM5.6 billion, expansion in healthcare business, and stable income from property investments and other divisions,” it said.