KUALA LUMPUR: Sunway Bhd is potentially an FBM KLCI constituent in the future, according to an investor note by Hong Leong Investment Bank (HLIB) driven by its healthcare, property development and construction segments.
"The conglomerate is currently ranked number 28 in terms of market capitalisation on Bursa Malaysia; Sunway shows potential for inclusion in the FBM KLCI index in the future", said the investment house in a note today.
The investment note comes on the back of Sunway Bhd’s collaboration in Singapore with Sunway-Hoi Hup to secure a 4.95-acre (two-hectare) land parcel in Tengah town for S$423.38 million (RM1.5 billion) to develop an executive condominium (EC).
HLIB Research anticipates this venture to contribute up to RM105 million in profit to the group, which is expected to be recognised in FY2028 or FY2029.
“The current land parcel is situated in the greenfield of Tengah town, close to the future Tengah MRT Station on the Jurong Regional Line, connecting to commercial hubs such as the Jurong Lake District, Jurong Innovation District, and Tuas Port.
“The land is also surrounded by various facilities and amenities, such as schools, colleges, hospitals, shopping malls, and three other MRT stations,” stated HLIB.
This marks Sunway-Hoi Hup's second successful land tender in the area, following a previous acquisition in September 2023 for a purchase price of S$348.5 million. The two sites are adjacent, paving the way for a potential mega EC project with 1,055 units, subject to regulatory approval.
Given the successful sales of the first launch in Tengah town, which saw full sales within a month of its October 2022 debut, HLIB Research expects brisk demand for the EC project. Sunway-Hoi Hup is now strategically positioned to plan these two projects' launch timing and pricing, with the first launch expected in early 2025.
HLIB highlighted that the land acquisition will replenish Sunway’s land bank in Singapore, which had been reduced after the launch of two private condominiums in 2023.