KLCI Stock - SUNWAY / 5211 - 2011 Quarter 3

SUNWAY BERHAD

Company Description

Sunway Berhad, formerly Alpha Sunrise Sdn Bhd, is engaged in two businesses: property and construction. Its other business divisions include quarry and building materials, trading and manufacturing, hospitality, leisure, and healthcare. It is a special purpose company formed for the acquisition of SunCity Business and the SunH Business. In its construction business, it offers designing and building services in the fields of building construction, civil engineering, infrastructure, mechanical and electrical engineering, machinery and site equipment rental, precast, foundation and piling, and stone materials. It owns 36.7% in Sunway real estate investment trust (REIT), which is managed by its subsidiary Sunway REIT Management Sdn Bhd. Sunway REIT owns a portfolio of retail and commercial properties. On November 3, 2011, it acquired Avenue Wisdom Sdn Bhd. On November 16, 2011, the Company announced that its wholly owned subsidiary, Sunway City Sdn Bhd, acquired Sunway Mall Sdn Bhd.

Company Info

Listing Date	2011-08-23
IPO Price	2.8
Market Capital (Capital Size)	3,257,112,610 (Large)
Par Value	RM 1.00
Board	Main
Sector	Properties
Major Industry	Civil Engineering
Sub Industry	Trading of Pharmaceutical & Construction Related Products
Website	http://www.sunway.com.my

My Analysis

Forecast P/E now	2.52/0.2426 = 10.39 (Moderate)
Target Price	0.2426*15.0 = 3.64 (PE 15.0, EPS 0.2426)
Decision	BUY if Bolinger upper band open and stock price above SMA20 or stock price below SMA20 and buying volume stronger than selling
Comment	Revenue decreased 6.8%, eps decreased 23.3%, cash generated from operating more than enough to cover all expenses, better liquidity ratio but still at low level now, higher gearing ratio at high level now, higher inventory and property development cost
First Support Price	2.43
Second Support Price	2.32
Risk Rating	MODERATE

Research House

Maybank Target Price	2.28 (2011-11-25)
HwangDBS Target Price	3.3 (2011-12-20)
MIDF Target Price	2.55 (2011-12-20)
TA Target Price	3.16 (2011-12-20)
Affin Target Price	2.79 (2011-12-27)
OSK Target Price	3.31 (2011-12-27)
HLG Target Price	3.12 (2012-01-10)

Accounting Ratio

Return on Equity	%
Dividend Yield	-
Profit Margin	9.71%
Tax Rate	20.63%
Asset Turnover	0.3617
Net Asset Value Per Share	2.18
Net Tangible Asset per share	1.92
Price/Net Tangible Asset Per Share	1.16
Cash Per Share	0.74
Liquidity Current Ratio	1.4763
Liquidity Quick Ratio	1.0618
Liquidity Cash Ratio	0.4253
Gearing Debt to Equity Ratio	1.5671
Gearing Debt to Asset Ratio	0.5766
Working capital per thousand Ringgit sale	38.5%
Days to sell the inventory	127
Days to collect the receivables	180
Days to pay the payables	252

Technical Analysis

SMA 20	2.497 (Uptrend 23 days)
SMA 50	2.394 (Uptrend)
SMA 100	2.268 (Uptrend)
SMA 200	Not Available
MACD	0.066312 (Downtrend 7 days)
MACD Histogram	-0.004476 (Downtrend 5 days)

My notes based on 2011 quarter 3 report (number in '000):-
- Lower revenue than FY11Q2 mainly due to lower revenue from construction division

- Lower pbt than FY11Q2 mainly due to lower profit from property investment division, got RM12.9 million listing expenses and loss in derivatives in current quarter

- Estimate next 4Q eps after 2011 Q3 result announced = (0.0715+0.044)*2*1.05 = 0.2426, estimate PE on current price 2.52 = 10.39(DPS 0.081)

SUNWAY latest news (English)

SUNWAY latest news (Chinese)



Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2011-11-24	2011	3	N/A	N/A	-	2.13%	7.58%	934031	2770307	90736	316962	69224	245928	0.0536	0.1903	7658293	4415435	425224	3242858	276192	91099	112115	864253	185093	72978	937231	1292505	1292505	2869361	2011-09-30	9.71%	20.63%	0.3617	-	2.18	1.92	1.16	0.74	1.4763	1.0618	0.4253	1.5671	0.5766	38.5%	127	180	252
2011-08-25	2011	2	2.47	1.67	-	3.37%	5.49%	1002565	1836276	147007	226226	108415	176704	0.0699	0.1139	7454474	4237714	418529	3216760	156119	19042	3408	854932	137077	140485	995417	1551006	1551006	3551803	2011-06-30	14.66%	20.88%	N/A	-	1.8	1.59	1.44	0.65	1.3995	1.0143	0.4403	1.5144	0.5685	N/A	-	N/A	N/A
2011-08-16	2011	1	2.66	2.25	-	2.22%	2.22%	833711	833711	79219	79219	68289	68289	0.0440	0.0440	7228852	4150200	397336	3078652	72791	46125	7685	850591	118916	111231	961822	1551006	1551006	N/A	2011-03-31	9.50%	-	N/A	-	1.73	1.52	N/A	0.63	1.4379	1.016	0.4446	1.5478	0.5741	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Biological assets (A-0)	Deferred tax assets (A-0)	Derivative assets (A-0)	Goodwill on consolidation (A-0)	Investment in associated companies (A-0)	Investment in jointly controlled entity (A-0)	Investment properties (A-0)	Land held for property development (A-0)	Other investments (A-0)	Property, plant and equipment (A-0)	Receivables (A-0)	Rock reserves (A-0)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Derivative assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Property development costs (A-1)	Deferred tax liabilities (L-0)	Derivative liabilities (L-0)	Loans & borrowings (L-0)	Other liabilities (L-0)	Current tax liabilities (L-1)	Derivative liabilities (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Minority interest (M-1)
2011	3	291	41662	30652	330095	1009343	493243	785573	661315	1773	972137	13456	8613	953739	56462	2180	355043	1368401	574315	83167	1021	1886652	202344	25980	277	372765	1843229	425224
2011	2	270	42429	-	330105	1008606	478974	768352	629724	1797	957881	18011	8847	1009830	64349	7275	321865	1244642	561517	83869	662	1662981	196866	43328	178	622063	1627767	418529
2011	1	435	39833	-	330095	978280	457233	752294	535715	1765	948639	17634	9080	976327	52337	10425	301949	1192200	624611	80766	1204	1678295	193770	63238	219	649921	1482787	397336

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income	Share of profit/ (loss) of associates	Derivative (loss)/gain	Share of net profit of jointly controlled entity
2011	3	934031	18723	25567	27982	897859	2789	7352	16751	11859	39905
2011	2	1002565	30690	15897	22291	967069	7902	9071	56954	385	38707
2011	1	833711	9702	16492	17352	807670	20632	3808	17112	3173	28225

Financial Quarter Segments Revenue

year	qrt	Others	Property development	Construction	Investment holding	Property investment	Manufacturing & trading	Quarry
2011	3	73742	229653	305105	244	134336	143456	47495
2011	2	74312	236571	386565	123	117183	140169	47642
2011	1	68742	203122	277051	2007	108975	133106	40708

Financial Quarter Segments Profit

year	qrt	Others	Property development	Construction	Investment holding	Property investment	Manufacturing & trading	Quarry
2011	3	4867	29947	16424	20932	28722	11396	3464
2011	2	3696	9341	10419	32223	26804	12815	3457
2011	1	1051	23888	1449	11739	16047	12387	310

Financial Quarter Segments Associate

year	qrt	Others	Property development	Construction	Property investment
2011	3	710	37462	2444	16040
2011	2	-	24774	13933	56954
2011	1	985	12830	15385	16137

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables



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