KUALA LUMPUR (July 28): BIMB Securities Research has initiated coverage on Sunway Construction Group Bhd (SCG) with a “Buy” rating at RM1.20 with a target price of RM1.43 and said that being the largest pure play construction company in Malaysia that provides end-to-end construction solutions to the customers, SCG was unique compared to the others.
In a note today, the research house said SCG will be listed in the Bursa Malaysia on July 28 offering 398.7 million existing shares or 30.8% to the public.
“Based on the IPO price of RM1.20, SCG is priced at a 12.4x of FY14 PE or 11.7x for FY15.
“We believe that it is a reasonable entry for investor for this well-established company with a commendable dividend policy.
“Based on our projection, group’s net earnings are expected to improve by 6.7% for FY15. Buy for SCG with target price of RM1.43,” it said.