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Research by HLIB
Buy (Maintain) – TP RM1.94

“Brighter prospects ahead"

Sunway REIT’s 1Q24 core net profit of RM82.0m (+11.7% QoQ, -10.4% YoY) was within ours and street estimates at 23% each. The group’s outlook remains positive as (i) the retail segment will stay strong on the back of higher rental reversions post completion of AEIs at Sunway Pyramid and Sunway Carnival Mall along with higher disposable incomes supporting tenant sales, while (ii) the hotel segment will continue to benefit from improving tourist arrivals. On top of the recently completed six hypermarkets acquisition, should the remaining two ongoing purchases be completed by 3Q24, management foresees a stronger FY24 showing. Maintain BUY with a higher TP of RM1.94 based on FY25 DPU on targeted yield of 5.3%.

Analyst:
Tan Je Jyne
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$KLSE-SUNREIT
Research by HLIB
Buy (Maintain) – TP RM1.94

“Brighter prospects ahead"

Sunway REIT’s 1Q24 core net profit of RM82.0m (+11.7% QoQ, -10.4% YoY) was within ours and street estimates at 23% each. The group’s outlook remains positive as (i) the retail segment will stay strong on the back of higher rental reversions post completion of AEIs at Sunway Pyramid and Sunway Carnival Mall along with higher disposable incomes supporting tenant sales, while (ii) the hotel segment will continue to benefit from improving tourist arrivals. On top of the recently completed six hypermarkets acquisition, should the remaining two ongoing purchases be completed by 3Q24, management foresees a stronger FY24 showing. Maintain BUY with a higher TP of RM1.94 based on FY25 DPU on targeted yield of 5.3%.

Analyst:
Tan Je Jyne
JJTan@hlib.hongleong.com.my

$SUNREIT / 5176 (SUNWAY REAL ESTATE INVESTMENT TRUST)