KUALA LUMPUR (July 7): MIDF Research has initiated coverage on Sunway Construction Group Berhad (SCGB) at its initial public offering price of RM1.20 with a “Buy” rating and target price of RM1.38.
In a note today, the research house said SCGB was the largest pure-play integrated construction services provider offering end-to-end total construction solutions.
“We expect SCGB to clinch contracts in the upcoming major infrastructure projects such as MRT2, LRT3, and BRT given its successful track record.
“Order book prospect is good with support from Sunway Berhad, government infrastructure spending and residential housing development in Singapore.
“Initiate coverage with a Buy recommendation and target price of RM1.38,” it said.
SCGB is slated to list on the Main Market of Bursa Malaysia on July 28.