KUALA LUMPUR: Sunway Bhd's outlook remains bright due to three strong catalytic exposures, according to RHB Research.
They are the multi-year growth in Iskandar Malaysia, listing of Sunway Healthcare Group (SHG) and strong data centre (DC)-related job flows.
RHB Research said footfall to Sunway Iskandar's sales gallery had doubled from last year.
The firm said the marketing team was seeing increased foreign purchasers, especially during the weekend.
"During our visit last month, we also learnt that property prices in Sunway Iskandar are rising, as the indicative psf pricing for the next launch is about 20-30 per cent higher (different types of landed product).
"In the pipeline, Sunway plans to roll out Sakura Phase 2 and Maple with combined gross domestic value (GDV) of RM280 million, and it may also bring forward the first launch at the Pendas land," it said.
RHB Research said Sunway was now accelerating the initial public offering (IPO) for SHG.
The listing may take place in early 2026, it added.
Recently, it was reported that Sunway was bidding for Island Hospital in Penang.
"Depending on the valuation, we believe Island Hospital will provide a strategic synergy to SHG given the former's strength in medical tourism.
"Based on our financial year 2025 (FY25) earnings before interest, tax, depreciation, and amortisation (Ebitda) and 20.1 times enterprise value (EV)/Ebitda, SHG could be worth an estimated RM11.2 billion," it said.
Moving forward, RHB Research said the RM8 billion join venture (JV) Free Commercial Zone logistics hub development with Equalbase, upcoming data centres and hospital nearby, as well as the Cheah Fah Chinese primary school and Sunway International School are expected to help create a positive spillover to demand for properties in Sunway Iskandar in the future.
"We maintain Buy on the stock with a new target price of RM5.00 from RM4.00 previously.
"As these factors and the group's corporate exercise progressively show more visibility, the re-rating for Sunway is expected to continue," it added.