Sunway Construction Group Berhad

KLSE:SUNCON Stock Report

Market Cap: RM 5.7b

Sunway Construction Group Berhad Valuation

Is SUNCON undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SUNCON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUNCON (MYR4.42) is trading below our estimate of fair value (MYR9.24)

Significantly Below Fair Value: SUNCON is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUNCON?

Key metric: As SUNCON is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SUNCON. This is calculated by dividing SUNCON's market cap by their current earnings.
What is SUNCON's PE Ratio?
PE Ratio34.1x
EarningsRM 167.00m
Market CapRM 5.67b

Price to Earnings Ratio vs Peers

How does SUNCON's PE Ratio compare to its peers?

The above table shows the PE ratio for SUNCON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
KERJAYA Kerjaya Prospek Group Berhad
19.2x17.9%RM 2.7b
IJM IJM Corporation Berhad
16.9x5.4%RM 10.1b
MRCB Malaysian Resources Corporation Berhad
17.3x-18.9%RM 2.3b
KGB Kelington Group Berhad
19.6x15.8%RM 2.4b
SUNCON Sunway Construction Group Berhad
34.1x26.6%RM 5.7b

Price-To-Earnings vs Peers: SUNCON is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (18.2x).

Price to Earnings Ratio vs Industry

How does SUNCON's PE Ratio compare vs other companies in the MY Construction Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AZRB Ahmad Zaki Resources Berhad
1.2xn/aUS$32.44m
INGENIEU Ingenieur Gudang Berhad
2.8xn/aUS$15.34m
ZELAN Zelan Berhad
1xn/aUS$7.59m
No more companies available in this PE range
SUNCON 34.1xIndustry Avg. 18.3xNo. of Companies8PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SUNCON is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the MY Construction industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is SUNCON's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUNCON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.1x
Fair PE Ratio27.5x

Price-To-Earnings vs Fair Ratio: SUNCON is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SUNCON forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 4.42
RM 4.79
+8.4%
13.9%RM 6.00RM 3.70n/a16
Nov ’25RM 4.15
RM 4.85
+17.0%
16.4%RM 6.68RM 3.70n/a15
Oct ’25RM 4.49
RM 4.79
+6.7%
16.1%RM 6.15RM 3.70n/a14
Sep ’25RM 4.01
RM 4.77
+18.9%
15.4%RM 6.15RM 3.70n/a13
Aug ’25RM 4.70
RM 4.55
-3.3%
24.7%RM 6.29RM 2.30n/a13
Jul ’25RM 3.90
RM 3.93
+0.7%
16.0%RM 4.90RM 2.30n/a13
Jun ’25RM 3.15
RM 3.35
+6.2%
15.7%RM 3.91RM 2.30n/a13
May ’25RM 3.03
RM 3.01
-0.6%
13.0%RM 3.59RM 2.30n/a14
Apr ’25RM 2.90
RM 3.01
+3.9%
13.0%RM 3.59RM 2.30n/a14
Mar ’25RM 2.49
RM 2.85
+14.6%
13.9%RM 3.59RM 2.26n/a14
Feb ’25RM 2.25
RM 2.15
-4.3%
11.5%RM 2.70RM 1.73n/a14
Jan ’25RM 1.94
RM 2.10
+8.1%
8.6%RM 2.46RM 1.73n/a14
Dec ’24RM 1.83
RM 2.07
+13.1%
7.5%RM 2.26RM 1.73n/a13
Nov ’24RM 1.91
RM 2.04
+7.0%
8.5%RM 2.39RM 1.73RM 4.1513
Oct ’24RM 1.90
RM 2.01
+5.7%
9.6%RM 2.39RM 1.69RM 4.4913
Sep ’24RM 1.95
RM 1.98
+1.4%
7.3%RM 2.14RM 1.69RM 4.0114
Aug ’24RM 1.80
RM 1.95
+8.4%
8.1%RM 2.14RM 1.57RM 4.7013
Jul ’24RM 1.55
RM 1.96
+26.5%
8.0%RM 2.14RM 1.57RM 3.9014
Jun ’24RM 1.69
RM 1.95
+15.4%
8.2%RM 2.14RM 1.57RM 3.1514
May ’24RM 1.75
RM 1.94
+10.9%
7.7%RM 2.13RM 1.57RM 3.0313
Apr ’24RM 1.66
RM 1.93
+16.5%
7.8%RM 2.13RM 1.57RM 2.9013
Mar ’24RM 1.67
RM 1.92
+15.1%
8.9%RM 2.13RM 1.57RM 2.4913
Feb ’24RM 1.63
RM 1.89
+16.0%
10.2%RM 2.13RM 1.53RM 2.2513
Jan ’24RM 1.56
RM 1.80
+15.7%
10.7%RM 2.10RM 1.51RM 1.9413
Dec ’23RM 1.48
RM 1.78
+20.2%
11.0%RM 2.10RM 1.51RM 1.8313
Nov ’23RM 1.55
RM 1.82
+17.2%
10.4%RM 2.10RM 1.57RM 1.9113

Analyst Forecast: Target price is less than 20% higher than the current share price.

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