KLSE:SUNWAY

Stock Analysis Report

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Market Cap

RM8.3b

Last Updated

2021/07/30 17:52 UTC

Data Sources

Company Financials +

Executive Summary

Sunway Berhad, an investment holding company, engages in real estate, construction, education, healthcare, retail, and hospitality businesses in Malaysia, Singapore, China, India, Australia, Indonesia, the United Kingdom, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sunway Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUNWAY is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SUNWAY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

SUNWAY

-1.7%

MY Industrials

-1.0%

MY Market


1 Year Return

25.9%

SUNWAY

-1.3%

MY Industrials

-0.7%

MY Market

Return vs Industry: SUNWAY exceeded the MY Industrials industry which returned -1.3% over the past year.

Return vs Market: SUNWAY exceeded the MY Market which returned -0.7% over the past year.


Shareholder returns

SUNWAYIndustryMarket
7 Day-1.2%-1.7%-1.0%
30 Day-3.4%-1.1%-0.4%
90 Day4.9%-3.0%-5.9%
1 Year27.0%25.9%2.2%-1.3%3.0%-0.7%
3 Year18.1%7.6%-10.4%-19.1%-2.8%-12.0%
5 Year57.5%34.5%23.7%-44.0%9.8%-8.7%

Long-Term Price Volatility Vs. Market

How volatile is Sunway Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunway Berhad undervalued compared to its fair value and its price relative to the market?

24.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNWAY (MYR1.7) is trading above our estimate of fair value (MYR1.54)

Significantly Below Fair Value: SUNWAY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUNWAY is poor value based on its PE Ratio (24.6x) compared to the MY Industrials industry average (12x).

PE vs Market: SUNWAY is poor value based on its PE Ratio (24.6x) compared to the MY market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SUNWAY is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SUNWAY is overvalued based on its PB Ratio (1x) compared to the MY Industrials industry average (0.4x).


Future Growth

How is Sunway Berhad forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNWAY's forecast earnings growth (25.2% per year) is above the savings rate (3.6%).

Earnings vs Market: SUNWAY's earnings (25.2% per year) are forecast to grow faster than the MY market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUNWAY's revenue (12.6% per year) is forecast to grow faster than the MY market (6.1% per year).

High Growth Revenue: SUNWAY's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUNWAY's Return on Equity is forecast to be low in 3 years time (5.1%).


Past Performance

How has Sunway Berhad performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNWAY has a large one-off gain of MYR100.6M impacting its March 31 2021 financial results.

Growing Profit Margin: SUNWAY's current net profit margins (9.3%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: SUNWAY's earnings have declined by 7.1% per year over the past 5 years.

Accelerating Growth: SUNWAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNWAY had negative earnings growth (-43.5%) over the past year, making it difficult to compare to the Industrials industry average (-18.6%).


Return on Equity

High ROE: SUNWAY's Return on Equity (3.9%) is considered low.


Financial Health

How is Sunway Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SUNWAY's short term assets (MYR6.6B) do not cover its short term liabilities (MYR8.1B).

Long Term Liabilities: SUNWAY's short term assets (MYR6.6B) exceed its long term liabilities (MYR2.2B).


Debt to Equity History and Analysis

Debt Level: SUNWAY's debt to equity ratio (65.6%) is considered high.

Reducing Debt: SUNWAY's debt to equity ratio has reduced from 75.5% to 65.6% over the past 5 years.

Debt Coverage: SUNWAY's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: SUNWAY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Sunway Berhad current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNWAY's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.49%).

High Dividend: SUNWAY's dividend (0.88%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

Stable Dividend: SUNWAY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SUNWAY has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), SUNWAY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUNWAY's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Danny Ng (61 yo)

8.17yrs

Tenure

RM1,177,000

Compensation

Mr. Ng Boon Liang, also known as Danny, serves as an Executive Director of Sunway Paving Solutions Sdn Bhd. Mr. Ng serves as the Chief Executive Officer of Building Materials Division at Sunway Berhad sinc...


CEO Compensation Analysis

Compensation vs Market: Danny's total compensation ($USD277.63K) is below average for companies of similar size in the MY market ($USD507.73K).

Compensation vs Earnings: Insufficient data to compare Danny's compensation with company performance.


Leadership Team

Experienced Management: SUNWAY's management team is seasoned and experienced (8.2 years average tenure).


Board Members

Experienced Board: SUNWAY's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sunway Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunway Berhad
  • Ticker: SUNWAY
  • Exchange: KLSE
  • Founded: 1974
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: RM8.311b
  • Shares outstanding: 4.89b
  • Website: https://www.sunway.com.my

Number of Employees


Location

  • Sunway Berhad
  • Menara Sunway
  • Level 16
  • Subang Jaya
  • Selangor
  • 47500
  • Malaysia

Listings


Biography

Sunway Berhad, an investment holding company, engages in real estate, construction, education, healthcare, retail, and hospitality businesses in Malaysia, Singapore, China, India, Australia, Indonesia, the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 17:52
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.