KUALA LUMPUR: Sunway Bhd's property segment continues to excel, with analysts highlighting the company's strong sales performance and strategic project launches during the third quarter of 2024 (Q3 2024).
RHB Research and CGS International noted that the property development segment was a significant driver of Sunway's Q3 2024 earnings, primarily due to the completion of Parc Central Residences in Singapore, which contributed RM124 million in accumulated development profit.
They also pointed out that Sunway recorded property sales of RM1.85 billion in the first nine months of ifs fiscal year, keeping the group on track to meet its full-year target of RM2.6 billion.
Key contributors to these sales included projects such as Velocity 3 with RM291 million, Aviana with RM233 million, and Singapore's projects with RM364 million.
RHB Research said that the group is doing decently in new property sales although there was a decrease from RM773 million in Q2 2024 to RM579 million in Q3 2024.
CGS International said that Novo Place, Sunway's executive condo project in Singapore, has already achieved a 57 per cent take-up rate shortly after its debut on Novemver 16.
RHB Research further underscored Sunway's expanding unbilled sales of RM4.5 billion and highlighted upcoming launches, such as Sunway Bayu in Ipoh and Sunway Wellesley townhouses in Penang, as key drivers for future revenue.
Meanwhile, CGS International linked the company's property success to strong operational execution and targeted project pipelines.
Both firms maintain a positive outlook on Sunway, with RHB Research increasing its target price to RM5.75, and CGS International raising it to RM5.70.
Overall, they see the property segment as a vital pillar of Sunway's broader business strategy, alongside its healthcare and construction divisions.