Sunway's RM2.6 Bln Deal Near RTS Link Lifts Shares - HLIB

KUALA LUMPUR, Feb 14 (Bernama) -- Sunway Bhd’s shares rose as a proposed project with a gross development value (GDV) exceeding RM2.6 billion near the Johor Bahru-Singapore Rapid Transit System (RTS) Link station boosts growth prospects.

At 10.45 am, the counter rose six sen, or 1.3 per cent, to RM4.68. 

Subsidiary Sunway Integrated Properties Sdn Bhd has entered into a master agreement with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) to develop the Bukit Chagar integrated development on 1.71 hectares.

The project will strengthen Sunway’s presence in Johor, extending beyond the Iskandar Puteri region and into the rapidly emerging Johor Bahru Central Business District (JB CBD), said Hong Leong Investment Bank Bhd.

It expects strong demand for the residential component of the mixed development, given its ultra-prime location connected directly to the RTS station, providing seamless cross-border travel to Singapore.

Meanwhile, the commercial retail mall and hotel components are poised to capitalise on JB CBD’s multi-decade growth prospects.

The project will take eight years with completion targeted by 2033. The first phase of serviced apartments is slated for launch in the third quarter of 2028.

“With the group’s widening exposure to the Malaysian economy, the stock provides a good proxy to the domestic economy, which is currently entering a new phase of growth.

“Moreover, in an environment of heightened geopolitical uncertainty and potential policy risks, particularly with the upcoming changes under the US President Donald Trump administration, Sunway’s predominantly domestic-focused business model stands out in its investment appeal given that it is less exposed to this risk,” it said in a note.

The investment bank maintains a “Buy” call on Sunway with a target price of RM5.75.

-- BERNAMA