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Thursday, 26 February 2015

Sunway 5211 - Upcoming potential windfall of 10% from Sunway Construction IPO

Sunway - Safe stock with upcoming potential 10% gain from Sunway Construction IPO. (dividends and dividend in specie from Sun Con)

2014 EPS Q1 6.03 + Q2 10.59+ Q3 8.34 + Q4 18.12 = 43.08
P/E                    = 3.32 / 43 = 7.7x
NTA                 =3.44 (trading below market price)
Dividend 2014  = 0.11 
Dividend Yield = (0.11/3.32) X 100 = 3.31% 

Sunway Construction targeted IPO - 2Q 2015.
Upcoming Catalyst - 1 SunCon share for free via dividend in specie for every 10 Sunway shares hold.

P/E 7 (excluded the exceptional gain on 4Q 2013 - take out as it is one off) is considerably cheap for a big cap property player. With the 3.3% dividend for 2014, it is higher than the money market interests. With the upcoming IPO, we foresee this price is a comfortable price for accumulation.

Disclaimer and Declaration

The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for illustration purposes.


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