Thursday 28 Mar 2024
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KUALA LUMPUR (Apr 14): Property developer Sunsuria Bhd’s share price advanced nine sen or 5.96% in the morning trading session to RM1.60, reacting to UOB KayHian Research’s Buy call.

The counter was one of the stocks with momentum today, with a trading volume of 507,700 shares done.

UOB KayHian is of the view that the construction of the Xiamen Malaysia University (XMU) Campus in Sepang is going to benefit Sunsuria's (fundamental: 2.5; valuation: 0.8) township development that surround the university.

“We understand the construction of the XMU campus is progressing smoothly and is expected to be completed by end-2015. XMU will greatly enhance the value of Sunsuria’s Xiamen township development,” the research house said in its note dated Apr 13.

Sunsuria is growing its existing land bank on hand from 4.71 acres to 445 acres through the asset injection by its executive chairman Datuk Ter Leong Yap, according to a press release dated Mar 11, 2015.

Bulk of the lands to be injected are catering for the township development project around XMU, dubbed Suria Serenia, which spans 346.58 acres of freehold land that has an estimated Gross Development Value (GDV) of about RM6.4 billion.

“We make no changes to our earnings forecasts pending completion of the acquisitions. However, we note that upon completion of the acqusitions, Sunsuria will see a quantum leap in earnings that could potentially reach RM30 million in FY16 (financial year ending Mar 31, 2016) and over RM100 million in FY17,” UOB KayHian said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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