KUALA LUMPUR: OSK Research is maintaining a Buy on SUNWAY HOLDINGS BHD [] after it won a RM258m job for the CONSTRUCTION [] of the Legoland Theme Park (Package 4) in Iskandar, Johor. The project is scheduled for completion in June 2012.
The research house said on Monday, March 7 it was not surprised that Sunway won the job as it had been consistently highlighting this possibility since it'' initiated coverage on the stock in May 2010.
OSK Research said Sunway has a track record with two other theme parks, namely Sunway Lagoon and Tambun Lost World. Including this recent award, Sunway has secured RM295.4m worth of jobs year-to-date.
'This compares with our assumption of RM1bn for FY11 and management's guidance for RM1bn to RM1.5bn. Other potential jobs are: (i) LRT Package B and subcontract for Package A, (ii) road networks in Sarawak under SCORE, and (iii) building-type jobs for the private sector,' it said.
The research house said as the company's job wins YTD are still within its replenishment target, it is keeping its estimates unchanged.
'Our TP continues to be based on the Sunway-SunCity merger price of RM2.60, which also implies 9.3x and 8.3x FY11-12 earnings. The EGM to vote on the merger is expected to be held sometime in April. If the proposal goes through, the merged entity should be listed in July-August,' it said.
The research house said on Monday, March 7 it was not surprised that Sunway won the job as it had been consistently highlighting this possibility since it'' initiated coverage on the stock in May 2010.
OSK Research said Sunway has a track record with two other theme parks, namely Sunway Lagoon and Tambun Lost World. Including this recent award, Sunway has secured RM295.4m worth of jobs year-to-date.
'This compares with our assumption of RM1bn for FY11 and management's guidance for RM1bn to RM1.5bn. Other potential jobs are: (i) LRT Package B and subcontract for Package A, (ii) road networks in Sarawak under SCORE, and (iii) building-type jobs for the private sector,' it said.
The research house said as the company's job wins YTD are still within its replenishment target, it is keeping its estimates unchanged.
'Our TP continues to be based on the Sunway-SunCity merger price of RM2.60, which also implies 9.3x and 8.3x FY11-12 earnings. The EGM to vote on the merger is expected to be held sometime in April. If the proposal goes through, the merged entity should be listed in July-August,' it said.
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