KLCI Stock - SUNWAY / 5211 - 2012 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)	3,024,461,709 (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	2.34/0.3083 = 7.59 (Moderate)
Target Price	0.3083*9.5 = 2.93 (PE 9.5, EPS 0.3083)
Decision	BUY if stock price sustain and uptrend above SMA20 with maintain MACD bullish trend or wait rebound at lower price
Comment	Revenue decreased 13% and also lower than preceding year corresponding quarter 7.2%, eps decreased 38.9% but higher than preceding year corresponding quarter 36%, cash generated from operating enough to cover financing expenses but still increase borrowings and spent 17.6% of Group cash to cover investing expenses, current assets maintain very high which can indicate good prospect in near future, operating margin improving to above 10%, liquidity ratio indicate enough to meet current obligation but cash level decreasing, gearing ratio indicate very high liabilities risk hence have to maintain high profit to mitigate the risk, all accounting of turnover period stiil acceptable range, higher inventory and property development cost normally bring higher income in future, most segment business still good
First Support Price	2.26
Second Support Price	2.17
Risk Rating	MODERATE

Research House

Affin Target Price	2.9 (2012-05-10)
OSK Target Price	3.31 (2012-05-30)
Kenanga Target Price	2.6 (2012-10-04)
HwangDBS Target Price	2.55 (2012-10-10)
CIMB Target Price	2.7 (2012-12-05)
ECM Target Price	2.7 (2012-12-05)
RHB Target Price	3.08 (2012-12-05)
TA Target Price	3.47 (2012-12-05)
AMMB Target Price	2.6 (2012-12-06)
HLG Target Price	2.93 (2012-12-10)
Maybank Target Price	2.54 (2012-12-10)
MIDF Target Price	2.7 (2012-12-10)

Accounting Ratio 

Return on Equity	9.34%
Dividend Yield	-
Operating Profit Margin	12.24%
Net Profit Margin	16.43%
Tax Rate	22.75%
Asset Turnover	0.4263
Net Asset Value Per Share	2.57
Net Tangible Asset per share	2.31
Price/Net Tangible Asset Per Share	1.0
Cash Per Share	0.55
Liquidity Current Ratio	1.3943
Liquidity Quick Ratio	0.8637
Liquidity Cash Ratio	0.2685
Gearing Debt to Equity Ratio	1.4866
Gearing Debt to Asset Ratio	0.5765
Working capital per thousand Ringgit sale	28.7%
Days to sell the inventory	162
Days to collect the receivables	150
Days to pay the payables	233

Technical Analysis 

SMA 10	2.308 (Uptrend)
SMA 20	2.305 (Uptrend 2 days)
SMA 50	2.317 (Uptrend)
SMA 100	2.283 (Same)
SMA 200	2.359 (Downtrend)
MACD (26d/12d)	0.001504 ( 0.002287 )
Signal (9)	-0.003767 ( 0.001318 )
MACD Histogram	0.005271 (Bullish trend 4 days)
Bolinger Upper Band	2.388
Bolinger Lower Band	2.222

My notes based on 2012 quarter 3 report (number in '000):-
- Lower revenue due to lower property sales and lower construction turnover after the elimination of intra-group construction billings due to in-house construction services deployed for some of the Group's property development projects

- Higher pbt than FY11Q3 mainly contributed by the stronger profit recognition from the property development in Malaysia and higher profit contribution from Australia and Singapore

- Lower pbt from property investment segment mainly due to higher interest costs incurred and provision of doubtful debts

- Lower revenue from construction segment mainly due to the higher elimination of intragroup construction billings but higher pbt due to better operating margin and writeback of previous provisions

- Estimate next 4Q eps after 2012 Q3 result announced = 3622814*0.11/1292505 = 0.3083, estimate PE on current price 2.34 = 7.59
- Estimate next 4Q eps after 2012 Q2 result announced = 3553909*0.11/1292505 = 0.3025, estimate highest/lowest PE = 8.86/7.17
- Estimate next 4Q eps after 2012 Q1 result announced = 3406537*0.105/1292505 = 0.2767, estimate highest/lowest PE = 8.93/7.88
- Estimate next 4Q eps after 2011 Q4 result announced = 3352934*0.11/1292505 = 0.2854, estimate highest/lowest PE = 9.64/7.43
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0715+0.044)*2*1.05 = 0.2426, estimate highest/lowest PE = 11.34/9.15

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	c_asset	liab	c_liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	oper_m	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
2012-11-28	2012	3	N/A	N/A	-	2.81%	9.34%	866979	2677833	142413	420459	94273	313055	0.0729	0.2422	8553453	3696686	4930639	2651223	306133	3622814	164825	482868	182408	772593	318043	135635	636958	1292505	1292505	2972761	2012-09-30	12.24%	16.43%	22.75%	0.4263	-	2.57	2.31	1.0	0.55	1.3943	0.8637	0.2685	1.4866	0.5765	28.7%	162	150	233
2012-08-28	2012	2	2.68	2.17	-	4.60%	6.53%	996089	1810854	193147	278046	154335	218782	0.1194	0.1693	8386658	3715909	4832749	2592901	315792	3553909	46233	259227	151923	775723	212994	61071	714652	1292505	1292505	2908136	2012-06-30	10.46%	19.39%	15.71%	0.4428	-	2.51	2.25	1.0	0.61	1.4331	0.9048	0.3062	1.4925	0.5762	30.2%	152	146	231
2012-05-29	2012	1	2.47	2.18	-	1.92%	1.92%	814765	814765	84899	84899	64447	64447	0.0499	0.0499	7900579	3218670	4494042	2388231	324443	3406537	54925	135119	83203	771887	80194	3009	774896	1292505	1292505	2959836	2012-03-31	7.41%	10.42%	21.79%	0.4708	-	2.38	2.13	1.08	0.61	1.3477	0.8969	0.3316	1.4581	0.5688	22.3%	118	126	206
2012-02-29	2011	4	2.75	2.12	-	N/A	N/A	968606	3738913	190084	507046	123786	369714	0.0958	0.2860	7843628	3284612	4490694	2353440	327963	3352934	323191	290604	116005	863561	32587	83418	780143	1292505	1292505	3373438	2011-12-31	21.25%	19.62%	31.10%	0.4767	9.1245	2.34	2.09	1.25	0.6	1.3957	0.9193	0.33	1.4845	0.5725	24.9%	122	129	217
2011-11-24	2011	3	2.75	2.22	-	N/A	N/A	934031	2770307	90736	316962	69224	245928	0.0536	0.1903	7658293	3310140	4415435	2242251	425224	3242858	276192	91099	112115	864253	185093	72978	937231	1292505	1292505	2869361	2011-09-30	6.87%	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%	130	180	258
2011-08-25	2011	2	2.47	1.67	-	N/A	N/A	1002565	1836276	147007	226226	108415	176704	0.0699	0.1139	7454474	3209478	4237714	2293336	418529	3216760	156119	19042	3408	854932	137077	140485	995417	1551006	1551006	3551803	2011-06-30	5.76%	14.66%	20.88%	0.2463	-	1.8	1.59	1.44	0.65	1.3995	1.0143	0.4403	1.5144	0.5685	49.9%	-	247	N/A
2011-08-16	2011	1	2.66	2.25	-	N/A	N/A	833711	833711	79219	79219	68289	68289	0.0440	0.0440	7228852	3157849	4150200	2196165	397336	3078652	72791	46125	7685	850591	118916	111231	961822	1551006	1551006	N/A	2011-03-31	5.20%	9.50%	-	0.1153	-	1.73	1.52	N/A	0.63	1.4379	1.016	0.4446	1.5478	0.5741	115.3%	-	522	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)	Intangible assets (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)
2012	3	529	34153	12742	326491	3046	1095454	526081	1046148	847681	1761	954367	636	7678	711930	80378	-	619108	1497592	787678	51407	509	2001919	225581	25307	216	602396	2023304	306133
2012	2	526	39742	46077	326491	3209	1093651	405867	1007105	795207	1810	942805	347	7912	793819	71078	-	586353	1481185	783474	46633	329	2054288	138598	31979	821	487619	2072482	315792
2012	1	471	33081	10455	326497	2887	1017417	381672	925979	993616	1798	979449	441	8146	791836	67277	-	436245	1282785	640527	48372	304	1904757	152378	28814	859	474282	1884276	324443
2011	4	416	33308	33600	326497	-	1015303	265896	888896	1017292	1849	960567	7013	8379	776705	67588	-	451840	1319145	669334	47914	182	1934472	154686	27098	1554	319222	2005566	327963
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
2012	3	866979	32399	29911	25108	785995	15741	10464	18919	300	37149
2012	2	996089	30334	29745	25943	917832	8478	6980	101516	162	10034
2012	1	814765	18501	24137	16117	770477	1951	5533	18875	248	23975
2011	4	968606	59123	27668	104754	867572	7175	9855	19026	515	17432
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
2012	3	77316	176624	267276	429	148239	143289	53806
2012	2	81728	188628	388331	144	143676	145041	48541
2012	1	80038	160109	258955	113	130526	147670	37354
2011	4	85139	243911	292789	535	161163	136423	48646
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
2012	3	6351	52970	18315	5920	19310	11660	3406
2012	2	6811	27813	3828	1136	37534	12671	2870
2012	1	5323	18127	21173	4854	21173	12352	920
2011	4	13462	65452	23706	1911	86432	13663	1162
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
2012	3	103	36904	245	19053
2012	2	-	9515	521	101483
2012	1	-	23631	346	18873
2011	4	348	9640	27073	18679
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

CURRENT

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