Sunsuria Berhad

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by PBIV

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research Report by PBIV

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by PublicInvest

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by Public
Trading Buy – TP RM0.55

"Strong Quarter”

Sunsuria Berhad (Sunsuria) reported 3Q net profit of RM9.0m (+32.1% YoY, >100% QoQ) which is ahead our expectations due to better than expected margins achieved. The Group’s performance improved ytd, with 9MFY24 net profit improved 17.7% YoY to RM14.9m or at about 92.5% of our full year estimates, primarily driven by the construction progress for its on-going projects which include residential projects such as Tower A, C, D, and E of Bangsar Hill Park and Seni Residences at Sunsuria City, as well as industrial project of Sunsuria Kejora Business Park (Phase 1) at Puncak Alam, along with the integrated mixed development of Sunsuria Forum 2 at Setia Alam. We change our FY24 upwards by 24% to account for higher margins. Unbilled sales now stood at RM1.02bn from RM896.7m a quarter ago. All told, given the price upside, we upgrade Sunsuria from Neutral to Trading Buy with TP unchanged at RM0.55, pegged at c.0.5x to book value.

Analyst:
Tan Siang Hing
research@publicinvestbank.com.my

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by Public
Neutral - TP RM0.55

"Broadening Revenue Stream"

Sunsuria Berhad’s (Sunsuria) strategy on diversifying into healthcare and education services over the years could see more meaningful contributions soon. Sunsuria’s healthcare division, through Icon Sunsuria Sdn Bhd, which entered into a partnership with Island Hospital Sdn Bhd to set up its first cancer centre in Penang i.e.Icon Sunsuria Cancer Centre, commenced operations early this year while its strategic partnership with Concord College International Limited to establish and operate England’s premier international school (with up to 1,200 students capacity) within Sunsuria City in Sepang, Selangor is now expected to commence its first intake in September. Boarders will arrive on Sept 1, 2024 while classes begin on Sept 2, 2024. We understand that the Group intends to grow these two segments which were initially intended to enhance the value of its property projects to profit centres in the future. As such, we expect Group’s earning to likely to be stronger as these segments mature into breakeven levels. 1H Group net profit of RM6m (+1.2% YoY) constituted about 37.2% of our full year estimates only but we expect 2HFY24 to be stronger. No change to our earnings estimates. Unbilled sales stood at RM896.7m as of 31 March 2024. All told, we maintain our Neutral call and TP of RM0.55, at c.0.5x to book value.

Analyst:
Tan Siang Hing
research@publicinvestbank.com.my

PROVISION OF FINANCIAL ASSISTANCE

MEMORANDUM OF UNDERSTANDINGSunsuria Berhad ("Sunsuria" or "Company") - Update on the Status of Memorandum of Understanding (MOU) with IAT Automobile Technology Co., Ltd. (IAT Automobile)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSSUNSURIA BERHAD (SUNSURIA OR THE COMPANY) SHARES SALE AND PURCHASE AGREEMENT AND SHAREHOLDERS AGREEMENT IN RELATION TO THE PROPOSED ACQUISITION OF 80% EQUITY INTEREST IN MAYER LAND SDN. BHD.

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSSUNSURIA BERHAD ("SUNSURIA" OR THE "COMPANY")

(I) ACQUISITION; AND

(II) PROVISION OF FINANCIAL ASSISTANCE

(COLLECTIVELY, THE "PROPOSALS")

Change in Boardroom - MISS TER SHIN NIE

Change of Company Secretary - YEAP YEN YEN

Change in Risk Committee - MISS TER SHIN NIE

Change in Principal Officer - MISS YEAP YEN YEN

Change in Principal Officer - MR ENG KIM HAW

Change of Company Secretary - ENG KIM HAW

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by PIB
Neutral – TP of MYR 0.55

“Expecting Stronger 2H24”

Sunsuria Berhad’s (Sunsuria) 2Q net profit came in within our expectations at RM4.3m (-11.2% YoY, >100% QoQ) primarily driven by the construction progress for its on-going projects which include residential projects such as Tower A, C, D, and E of Bangsar Hill Park and Seni Residences at Sunsuria City, as well as industrial project of Sunsuria Kejora Business Park (Phase 1) at Puncak Alam, along with the integrated mixed development of Sunsuria Forum 2 at Setia Alam. 1H Group net profit of RM6m (+1.2% YoY) constituted about 37.2% of our full year estimates only but we expect 2HFY24 to be stronger. No change to our earnings estimates. Unbilled sales stood at RM896.7m as of 31 March 2024. All told, we maintain our Neutral call and TP of RM0.55, at c.0.5x to book value.

Analyst(s):
Tan Siang Hing
research@publicinvestbank.com.my

SUNSURIA - Notice of Book Closure

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSSUNSURIA BERHAD ("SUNSURIA" OR THE "COMPANY")

(I) ACQUISITION; AND

(II) PROVISION OF FINANCIAL ASSISTANCE

(COLLECTIVELY, THE "PROPOSALS")

Interim Dividend

General Meetings: Outcome of Meeting

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

CIRCULAR TO SHAREHOLDERS IN RELATION TO PART A: (I) PROPOSED ACQUISITION OF A TOTAL OF 33% EQUITY INTEREST IN BANGSAR HILL PARK DEVELOPMENT SDN BHD ("BHPD") FROM SUEZ CAPITAL SDN BHD AND DASAR TEMASEK SDN BHD FOR A TOTAL CASH CONSIDERATION OF RM71,415,000 ("PROPOSED ACQUISITION"); AND (II) PROPOSED PROVISION OF FINANCIAL ASSISTANCE OF UP TO RM210.3 MILLION TO BHPD UPON COMPLETION OF THE PROPOSED ACQUISITION ("PROPOSED PROVISION OF FINANCIAL ASSISTANCE") (COLLECTIVELY, THE "PROPOSALS"); PART B: INDEPENDENT ADVICE LETTER FROM MERCURY SECURITIES SDN BHD TO THE NON-INTERESTED SHAREHOLDERS OF THE COMPANY IN RELATION TO THE PROPOSALS

General Meetings: Notice of Meeting

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSSUNSURIA BERHAD (SUNSURIA OR THE COMPANY)
- PROPOSED ACQUISITION OF 1,776.63 ACRES OF LEASEHOLD LANDS BY TAPAH LAND DEVELOPMENT SDN. BHD., AN INDIRECT SUBSIDIARY OF THE COMPANY

MEMORANDUM OF UNDERSTANDINGSunsuria Berhad ("Sunsuria" or "Company") - Update on the Status of Memorandum of Understanding (MOU) with IAT Automobile Technology Co., Ltd. (IAT Automobile)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSSUNSURIA BERHAD (SUNSURIA OR THE COMPANY)
SHARES SALE AND PURCHASE AGREEMENT AND SHAREHOLDERS AGREEMENT IN RELATION TO THE PROPOSED ACQUISITION OF 80% EQUITY INTEREST IN MAYER LAND SDN. BHD.

General Meetings: Outcome of Meeting

$SUNSURIA / 3743 (SUNSURIA BERHAD)
Research by PB
Neutral - TP of RM0.55

"Revenue Driven By Bangsar Hill Park"

Sunsuria Berhad (Sunsuria) started FY24 with 1Q net profit of RM1.7m (+57.7% YoY, +38.0% QoQ) mainly due to higher billings from its on-going residential projects of Tower A, D, and E of Bangsar Hill Park, along with the integrated mixed development of Sunsuria Forum 2 in Setia Alam. The Group’s 1QFY24 performance lags our expectations as the contribution from its subsidiary, i.e. Bangsar Hill Park Sdn Bhd (51%-owned currently but to be raised to 84% by 1HCY24) came in higher than expected, with its minority interests therefore rising more than 6x to RM6.4m. As such we revise our billing assumptions and cut FY24/FY25/FY26 earnings estimates by 45%/18%/18%. Elsewhere, the Group sold about RM114.3m of properties in 1QFY24 driven by contribution from completed projects, ongoing developments, and new launches. It launched Talisa, the second phase of its Bangsar Hill Park with development commencing recently. Unbilled sales as of 31 December 2023 reached RM889.5m. All told, we maintain our Neutral call and TP of RM0.55, at a discount of c.0.5x to book value, pegged on par with sector average currently.

Analyst(s):
Tan Siang Hing
research@publicinvestbank.com.my

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

$SUNSURIA / 3743 (SUNSURIA BERHAD)