Sunway Construction Group Berhad (KLSE:SUNCON) Stocks Shoot Up 26% But Its P/E Still Looks Reasonable
Jun 12
Malaysian (KLSE) Industrials Sector Analysis
UpdatedJun 15, 2024
DataAggregated Company Financials
Companies272
- 7D1.3%
- 3M16.1%
- 1Y34.2%
- YTD24.4%
In the last week, the Industrials industry is up 1.3%, with Sunway Berhad leading the way, up 7.0%. Meanwhile, Sime Darby Berhad actually underperformed within the industry, shrinking 8.0% in the last week. In the last 12 months, the industry was up 34%. Looking forward, earnings are forecast to grow by 13% annually.
Sector Valuation and Performance
Has the Malaysian Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 15 Jun 2024 | RM293.5b | RM235.7b | RM11.7b | 19.3x | 25.1x | 1.2x |
| Mon, 13 May 2024 | RM277.4b | RM225.8b | RM10.6b | 18.2x | 26.1x | 1.2x |
| Wed, 10 Apr 2024 | RM262.2b | RM225.1b | RM10.6b | 17.6x | 24.7x | 1.2x |
| Fri, 08 Mar 2024 | RM246.3b | RM223.2b | RM10.8b | 16.8x | 22.8x | 1.1x |
| Sun, 04 Feb 2024 | RM240.6b | RM232.9b | RM1.0b | 17.7x | 239.1x | 1x |
| Tue, 02 Jan 2024 | RM233.0b | RM232.2b | RM1.2b | 17.7x | 194.9x | 1x |
| Thu, 30 Nov 2023 | RM228.1b | RM229.1b | RM909.4m | 17.1x | 250.8x | 1x |
| Sat, 28 Oct 2023 | RM227.6b | RM225.5b | RM1.5b | 17.4x | 155.4x | 1x |
| Mon, 25 Sep 2023 | RM227.3b | RM222.6b | RM1.4b | 17.5x | 157.5x | 1x |
| Wed, 23 Aug 2023 | RM220.0b | RM218.1b | RM20.1m | 15.7x | 10937.5x | 1x |
| Fri, 21 Jul 2023 | RM215.8b | RM218.1b | RM52.8m | 15.6x | 4088.6x | 1x |
| Sun, 18 Jun 2023 | RM213.5b | RM217.3b | RM238.7m | 15.3x | 894.4x | 1x |
| Tue, 16 May 2023 | RM215.1b | RM425.9b | RM41.1b | 15.4x | 5.2x | 0.5x |
| Thu, 13 Apr 2023 | RM219.9b | RM215.2b | RM33.3b | 15.9x | 6.6x | 1x |
| Sat, 11 Mar 2023 | RM219.5b | RM214.7b | RM33.2b | 16.4x | 6.6x | 1x |
| Mon, 06 Feb 2023 | RM232.7b | RM210.2b | RM43.9b | 14.8x | 5.3x | 1.1x |
| Wed, 04 Jan 2023 | RM210.0b | RM208.4b | RM43.5b | 13.5x | 4.8x | 1x |
| Fri, 02 Dec 2022 | RM208.2b | RM204.2b | RM43.1b | 13.3x | 4.8x | 1x |
| Sun, 30 Oct 2022 | RM199.5b | RM198.2b | RM42.4b | 14.3x | 4.7x | 1x |
| Tue, 27 Sep 2022 | RM195.4b | RM196.9b | RM42.4b | 13.6x | 4.6x | 1x |
| Thu, 25 Aug 2022 | RM201.5b | RM190.3b | RM41.2b | 13.8x | 4.9x | 1.1x |
| Sat, 23 Jul 2022 | RM198.0b | RM188.7b | RM8.6b | 14.1x | 23x | 1x |
| Mon, 20 Jun 2022 | RM199.3b | RM188.7b | RM8.5b | 14.4x | 23.3x | 1.1x |
| Wed, 18 May 2022 | RM207.3b | RM182.9b | RM8.5b | 15x | 24.4x | 1.1x |
| Fri, 15 Apr 2022 | RM214.8b | RM182.7b | RM8.5b | 16.4x | 25.2x | 1.2x |
| Sun, 13 Mar 2022 | RM207.0b | RM187.0b | RM9.0b | 14.7x | 22.9x | 1.1x |
| Tue, 08 Feb 2022 | RM213.5b | RM184.0b | RM7.1b | 16.8x | 30.1x | 1.2x |
| Thu, 06 Jan 2022 | RM223.1b | RM183.7b | RM7.0b | 18.3x | 31.7x | 1.2x |
| Sat, 04 Dec 2021 | RM213.2b | RM184.9b | RM7.1b | 16.5x | 30.1x | 1.2x |
| Mon, 01 Nov 2021 | RM228.2b | RM186.5b | RM6.7b | 18.7x | 34.3x | 1.2x |
| Wed, 29 Sep 2021 | RM222.7b | RM184.1b | RM6.2b | 18x | 36x | 1.2x |
| Fri, 27 Aug 2021 | RM224.1b | RM183.1b | RM6.0b | 18.7x | 37.5x | 1.2x |
| Sat, 03 Jul 2021 | RM208.0b | RM183.0b | RM5.9b | 17x | 35.1x | 1.1x |
Price to Earnings Ratio
35.1x
Current Industry PE
- Investors are pessimistic on the Malaysian Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 25.1x which is higher than its 3-year average PE of -396x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 25% per year over the last three years.
- Revenues for these companies have grown 8.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Industrials sector?
| MY Market | 0.47% | |
| Industrials | 1.31% | |
| Aerospace & Defense | 26.00% | |
| Construction | 5.53% | |
| Trade Distributors | 4.66% | |
| Building | 3.51% | |
| Electrical | 3.30% | |
| Transportation | 2.78% | |
| Machinery | 2.06% | |
| Commercial Services | 1.88% | |
| Logistics | 0.30% | |
| Industrials | -0.35% | |
| Airlines | -0.66% | |
| Professional Services | -1.33% | |
| Infrastructure | -1.67% | |
| Marine and Shipping | -2.25% | |
Industry PE
- Investors are most optimistic about the Logistics industry even though it's trading below its 3-year average PE ratio of 212x.
- Analysts are expecting annual earnings growth of 15.6%, which is higher than its past year's earnings decline of 29.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Machinery industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 5.8% per year.
- In contrast, the Industrials industry is expected to see its earnings grow by 5.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SUNWAY Sunway Berhad | RM3.80 | 7.0% +RM1.4b | 140.5% | PE29.9x | |
| GAMUDA Gamuda Berhad | RM6.54 | 8.1% +RM1.4b | 52.1% | PE20.6x | |
| CHINHIN Chin Hin Group Berhad | RM3.58 | 7.5% +RM884.7m | 56.7% | PE94.1x | |
| SUNCON Sunway Construction Group Berhad | RM3.93 | 19.1% +RM812.3m | 141.1% | PE33.9x | |
| IJM IJM Corporation Berhad | RM2.96 | 3.9% +RM385.7m | 89.7% | PE17.3x |
