Sunway Holdings Berhad : A Fourth Property Project In Singapore - 06/09/2010

♦ A fourth property project in Singapore. Sunway and local partner Hoi
Hup Realty have won the bid for a piece of 99-year leasehold state land in
Singapore known as “S5b” located at Miltonia Close for S$165m (RM384m).
A 70:30 JV between Hoi Hup Realty/Hoi Hup JV Development and Sunway
has been set up to undertake the project, we understand, with a total GDV of
S$370m (RM861m).

Sunway Holdings Berhad : A Fourth Property Project In Singapore - 06/09/2010

Sunway Holdings Berhad : Secures A RM70m Putrajaya Infrastructure Contract - 02/09/2010

♦ Another contract. Sunway has secured a RM69.9m contract from Putrajaya Holdings for roadworks, drainage, utilities, landscaping works and engineering, procurement, construction & commissioning (EPCC) of chilled water storage tank, plant building and other associated works for the Gas District Cooling Plant 4 in Putrajaya. The latest contract has boosted Sunway’s YTD new contracts secured to RM607m (see Table 2) and its outstanding construction orderbook by 3.5% to RM2.1bn (see Table 3).
Assuming an EBIT margin of 7-8%, the contract will fetch a total EBIT of RM4.9-5.6m over the construction period ending Nov 2011 – Feb 2012. We are positive on the latest development.

Sunway Holdings Berhad : Secures A RM70m Putrajaya Infrastructure Contract - 02/09/2010

RHB Equity 360° - 2 September 2010 (Earnings review, Banks, Sunway, Kencana, SapuraCrest; Technical: Gamuda)

Strategy Update
- The 2Q report card was slightly better than our expectation. This was reflected primarily in the banking results, which were largely boosted by lower-than-expected allowances for impairment on loans. Of the 105 companies that we covered, 63 (60% of the total) were within our expectations, 23 above projections (21.9% of the total) and 19 below forecasts (18.1% of the total).

RHB Equity 360° - 2 September 2010 (Earnings review, Banks, Sunway, Kencana, SapuraCrest; Technical: Gamuda)

Sunway Holdings Berhad : Secures A RM70m Putrajaya Infrastructure Contract - 02/09/2010

♦ Another contract. Sunway has secured a RM69.9m contract from
Putrajaya Holdings for roadworks, drainage, utilities, landscaping works and
engineering, procurement, construction & commissioning (EPCC) of chilled
water storage tank, plant building and other associated works for the Gas
District Cooling Plant 4 in Putrajaya. The latest contract has boosted
Sunway’s YTD new contracts secured to RM607m (see Table 2) and its
outstanding construction orderbook by 3.5% to RM2.1bn (see Table 3).
Assuming an EBIT margin of 7-8%, the contract will fetch a total EBIT of
RM4.9-5.6m over the construction period ending Nov 2011 – Feb 2012. We
are positive on the latest development.

Sunway Holdings Berhad : Secures A RM70m Putrajaya Infrastructure Contract - 02/09/2010

Sunway Holdings Berhad : 1HFY12/10 Net Profit More Than Doubles From A Year Ago - 25/08/2010

•No issue. Excluding RM10.7m net exceptional gains, adjusted 1HFY12/10 net profit of RM77.8m came in at 57-58% of our full-year forecast and the full-year market consensus. However, we consider the results within expectations as we expect weaker contributions from its projects in the Gulf states in 3Q on the back of the traditionally slow period during the Ramadam month.

Sunway Holdings Berhad : 1HFY12/10 Net Profit More Than Doubles From A Year Ago - 25/08/2010

Corporate Highlights - 29/6/2010

♦ Banking
Sector Update : Valuations Still Decent With Potential For Earnings To Surprise

♦ Sunway Holdings
News Update : Secures A RM129m Contract To Build A Dairy Factory In Klang

Corporate Highlights - 29/6/2010

Sunway Holdings Bhd : Secures A RM129m Contract To Build A Dairy Factory In Klang - 29/6/2010

Another contract. Sunway has secured a RM129m contract from private company PML Dairies Sdn Bhd for the construction of a dairy product factory in Klang, Selangor. The contract has boosted Sunway’s YTD new contracts secured to RM537m (see Table 2) and its outstanding construction orderbook by 6% to RM2.4bn (see Table 3). Assuming an EBIT margin of 5-7%, the contract will fetch a total EBIT of RM6.5-9.0m over the construction period of 12 months ending Jul 2011. We are positive on the development.

Sunway Holdings Bhd : Secures A RM129m Contract To Build A Dairy Factory In Klang - 29/6/2010

RHB Equity 360° - 29 June 2010 (Banks, B-Toto, Hai-O, AEON, Sunway, Kencana; Technical: Time Eng)

Top Story : Banks – Valuations still decent with potential for earnings to surprise - Overweight
Sector Update
- In our view, the banking sector represents the best proxy to the economic recovery. We believe the sector can help lift the market to higher grounds, underpinned by factors such as: 1) earnings growth gaining momentum; 2) valuations remain decent relative to the market and historical levels; and 3) relatively low
foreign shareholding levels.
- Looking ahead to 2H2010, we expect the sector’s earnings growth momentum to pick up steam. We also do not discount the possibility of earnings surprises ahead and believe the areas that could surprise on the upside include: 1) interest income; 2) non-interest income; and 3) impairment allowances.
- Valuation-wise, we find that the sector is still compelling with the sector weighted average FY11 PER of 12.3x as compared to the FBM KLCI’s 2011 PER of 13.8x. More importantly, the historical trading bands of the banks suggest that there is still room for valuations to expand.
- Finally, although foreign shareholding of most banks are now off their lows, the levels are still well below peaks as well as below levels at the time of the entry of strategic partners.
- Competition, we think, will remain intense. In addition, BNM had also recently announced that five new commercial banking licences will be issued. While we believe that increasing competition would put pressure on margins and overheads (e.g. staff cost), domestic banks would still be able to hold their ground and maintain their market share at around the current level.
- We maintain our Overweight rating on the sector. Maybank remains as our top pick for the sector.

RHB Equity 360° - 29 June 2010 (Banks, B-Toto, Hai-O, AEON, Sunway, Kencana; Technical: Time Eng)

Corporate Highlights - 23/6/2010

♦ Sunway Holdings
Visit Note : Earnings Visibility Improves Further

♦ Motor
Sector Update : May TIV Rises 15.6% YoY, 4.2% MoM

♦ Oil & Gas
Sector Update : SOGT Back In The Spotlight

Corporate Highlights - 23/6/2010

Sunway Holdings Bhd : Earnings Visibility Improves Further - 23/6/2010

High construction margins sustainable. The high construction margins recorded by Sunway in its recently announced 1QFY12/10 results appear to be sustainable over the next few quarters thanks to continued strong contributions from two high-margin contracts, namely:
(1) The pre-cast concrete components contract in Singapore; and
(2) The Rihan Heights project of the Arzanah Development in Abu Dhabi, UAE.

Sunway Holdings Bhd : Earnings Visibility Improves Further - 23/6/2010

RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)

Top Story : Sunway Holdings – Earnings visibility improves further
Visit Note:

The high construction margins recorded in 1QFY12/10 appear sustainable over the next few quarters.Property profits from Malaysia are likely to exceed our forecasts as Sunway rides on its seeminglyworkable "boutique development" strategy. The still relatively poor visibility for new public jobs will not derail Sunway's overall growth prospects as growth in non-construction profits remains robust. FY12/10-12 net profit forecasts are raised by 7-11% largely to reflect higher construction margins and stronger property profits from Malaysia. Fair value is raised by 39% from RM1.69 to RM2.35. Maintain Outperform.

RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)

Sunway Holdings Berhad : To Venture Into Property Development In Sri Lanka - 18/6/2010

Sri Lanka, here I come. Sunway has entered into an MOU with Dasa Tourist to develop a 34-storey commercial-cum-residential property on a piece of land (total area not disclosed) in Colombo city, Sri Lanka, with a GDV of US$78m (RM250m). Dasa Tourist is a Sri Lanka-based company currently in the textile and garment business. Sunway believes Sri Lanka “is at the beginning of a property boom cycle” with the emergence of political stability following the defeat of the separatist Liberation Tigers in May 2009.

Sunway Holdings Berhad : To Venture Into Property Development In Sri Lanka - 18/6/2010

RHB Equity 360° - 18 June 2010 (Gaming, AFG, Sunway, SP Setia; Technical: Petra Perdana)

Top Story : Gaming
Positive Outlook from G2E Asia Conference Sector Update

- Last week, we attended the G2E Asia gaming conference in Macau, which is an annual conference focused on the trends and prospects in the Asian gaming market and the players behind it. The first day of the conference focused on the economic and regulatory issues in those Asian gaming jurisdictions beyond Macau, while the second day featured analysis on topics ranging from table games and non-gaming amenities to VIP play.

RHB Equity 360° - 18 June 2010 (Gaming, AFG, Sunway, SP Setia; Technical: Petra Perdana)

Corporate Highlights... - 01/06/2010

♦ Strategy / Earning Review : Downdraft Of Fear; Longer-term Outlook Still Positive

♦ Benchmarking
Market Update : Anticipating The Mid-Year Review

♦ Banking
Sector Update : Apr ‘10 System Data – Broadly Stable

♦ Sunway Holdings
News Update : Secures RM210m Building Job From SunCity

♦ Maxis
Results / Briefing Note : Delivering On Dividends

♦ Alliance Financial Group
Results Note : Lower-Than-Expected LLP Helps Beat Estimates

Corporate Highlights...-01/06/2010

Sunway Holdings Berhad : Secures RM210m Building Job From SunCity - 1/6/2010

More contracts in FY12/10. Sunway has secured a RM209.6m contract from sister company SunCity for the construction of a 13-storey shop-office block, an 18-storey service-apartment block, car parks and other recreational facilities in a mixed development in KL.

Sunway Holdings Berhad : Secures RM210m Building Job From SunCity - 1/6/2010

RHB Equity 360° - 1 June 2010 (Earnings Review, Market, Banks, Sunway, Maxis, AirAsia, MNRB, Affin, WTK...)

Strategy Update
♦ After three consecutive quarters of positive earnings surprises, the earnings reporting season that has just ended showed that the bulk of the corporate results that we covered were within our (83.5%) as well as market (68.2%) expectations.
♦ Unlike the previous three quarters, there were no significant revisions to our individual company’s earnings numbers during this reporting season (except for Genting Bhd due to positive minority interest caused by exceptional items incurred in Genting S’pore and Genting M’sia), suggesting that major earnings upgrades have already been factored into analysts’ projections and that earnings growth might have peaked in 1Q.
♦ Sequentially, net EPS for FBM KLCI stocks under our coverage recovered to +10.6% qoq in the 1Q, after easing to +4.2% in 4Q09. Yoy, net EPS for FBM KLCI stocks continued to trend up and surged to a high of +35.6% in the 1Q, from +11.7% in 1Q09. The strong surge reflects partly a low base effect, although it points to sustained recovery in corporate earnings.

Economic Highlights - Broad Monetary Aggregate Moderated, But Loan Growth Bounced Back In April - 1/6/2010

Sunway Holdings Berhad : 1QFY12/10 Net Profit More Than Doubles From A Year Ago - 26/05/2010

No issue. Excluding RM4.6m gains on derivatives, adjusted 1QFY12/10 net profit of RM35.3m came in within our expectation at 27% of our full-year forecast but beat the market at 29% of the full-year market consensus.

Sunway Holdings Berhad : 1QFY12/10 Net Profit More Than Doubles From A Year Ago -26/05/2010

RHB Equity 360° (Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM; Technical: Genting Malaysia)-26/05/2010

Top Story : Shifting Trends – Seeking shelter in domestic plays
Market Update
♦ The FBM KLCI has erased all its gains and more during the first five months of 2010 since turning downwards on 13 May. We expect the market to remain volatile, with the risk on the downside.
♦ We have used historical valuations and market data in order to find possible fundamental support levels for the FBM KLCI:
1) Average one-year forward PER for FBM KLCI stocks since 2000 is estimated to be around 15x, and one standard deviation (SD) below the mean is estimated to be around 13.3x, which is coincidentally the same valuation at the next technical support of 1,154 for the FBM KLCI; and
2) Annual returns for the FBM KLCI over the last 32 years have averaged around 13% and 1SD below the mean would imply a pullback of around -17.6%. However, we note that a 1SD fall has only occurred seven times over the last 32 years. As it stands, the FBM KLCI has already fallen by 7.2% from the peak this year.
♦ Having painted a near-term bearish picture for the market, we highlight that the correction is driven more by external factors relating to fears over global macroeconomic conditions especially in the EU. We acknowledge that these concerns could result in some of our earnings forecasts coming under pressure.

Therefore, in our view, companies that have little or hedged exposure to overseas markets or imported costs are likely to be more resilient. These domestic plays include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.

RHB Equity 360°(Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM;Technical: ...

Sunway Holdings Berhad : Secures Two Contracts Worth A Total Of RM154m - 18/5/2010

Two more contracts in FY12/10. Sunway has secured two “internal” contracts, namely:
1. An RM88m contract for earthworks, piling and sub-structure works for a 24-storey office tower in Bandar Sunway, from sister company Sunway City; and
2. An AED74.5m (RM65.7m) contract for the supply and installation of stones and tiling works for the Arzanah Development in Abu Dhabi, from Silver Coast – Sunway Innopave JV.

Sunway Holdings Berhad : Secures Two Contracts Worth A Total Of RM154m - 18/5/2010

RHB Equity 360° - 18 May 2010 (LPI, EON Cap, Sunway, Kencana, MISC, Evergreen, MAHB, KLCCP, Sino Hua-An, MAS;Technical: KLK)

Visit Note
♦ We believe that LPI will be able to grow its gross premium by 21%, underpinned by the improvement in the property market, further expansion of its agency force and continued premium contribution from its bancassurance tie-up with Public Bank.
♦ For FY10, we are not expecting significant changes from FY09’s gross premium breakdown as management indicated that they expect to maintain the composition of its business portfolio.
♦ Number of agents has increased from 1,388 in FY09 to 1,400 currently. LPI has also introduced three different classes of elite agents that are determined by the respective agent’s ability to achieve and maintain a minimum level of profitable premium income.
♦ We believe LPI may undertake a corporate exercise in FY12/10 to increase the liquidity of its stock. The options include a bonus issue or a share split, both of which would not require any more capital commitments by investors. We estimate that it could potentially issue bonus shares of 3-for-4 based on its reserves as at the latest quarterly results.
♦ We have changed our forecast assumptions to incorporate: 1) higher gross premium growth of 21%; 2) higher claims ratio of 48%; and 3) lower management expense ratio of 18.5%. As a result, we have raised our FY10-12 earnings forecast by 0.3-3.6% p.a..
♦ Maintain Outperform, with a new fair value of RM16.70 (RM16.65 previously)

RHB Equity 360° - 18 May 2010 (LPI, EON Cap, Sunway, Kencana, MISC, Evergreen, MAHB, KLCCP, Sino Hua-An, MA...