Sunway's Share Price Slightly Down Despite Strong 3Q Earnings

KUALA LUMPUR, Nov 27 (Bernama) -- Demand for Sunway Bhd’s shares remained limited in early trade today despite its strong earnings growth recorded in the third quarter of financial year 2024 (3Q FY2024) earnings growth.

At 11 am, the counter slipped by five sen to RM4.89, as it remained in an overbought position, according to analysts.

It was reported that the counter became the best-performing constituent member of the FBM KLCI index year to date after its share price breached the RM5 mark last Friday.

In its 3Q financial report yesterday, Sunway doubled its net profit to RM376.08 million from RM180.30 million in the same quarter last year mainly due to stronger operating performance across most business segments.

Revenue surged to RM2.03 billion from RM1.54 billion previously.

MIDF Amanah Investment Bank said it has revised up its earnings forecast for Sunway for FY2024, FY2025 and FY2026 by 14.3 per cent, 3.8 per cent and 4.4 per cent, factoring in higher contribution from the property development division.

“We revised our target price for Sunway to RM4.92 from RM4.24 as we update our sum of the parts valuation,” it said.

Nevertheless, MIDF Amanah maintains a neutral call on Sunway at this juncture as the upside in share price is limited.

-- BERNAMA