3 Things Investors Should Know About Sunway Berhad

Sunway Berhad (KLSE: 5211.KL) is one of the largest property companies in Malaysia. The company is perhaps most well-known for developing Bandar Sunway, a township within Klang Valley in Selangor, Malaysia.

The company currently has a market capitalization of about RM6.3 billion (S$2.08 billion), which is similar to the market caps of some mid-sized Singapore-listed real estate companies such as GuocoLand Limited (SGX: F17) and Hotel Properties Limited (SGX: H15).

Here are three things investors might want to know about Sunway.

A conglomerate

Although Sunway is best known for being a property developer, its business goes beyond that. It is actually a property conglomerate, with interests in construction and REITs too.

Sunway currently has a construction order book of about RM4.8 billion and is one of the major contractors in the Klang Valley Mass Rapid Transit project. The company is also the sponsor and main unitholder of Sunway Real Estate Investment Trust (KLSE.5176.KL), a REIT with a portfolio of retail, office, and hospitality assets.

Regional presence

Sunway has a regional presence given its land ownership in Malaysia, Singapore, and China. It has a landbank of about 3,303 acres with a potential gross development value (GDV) of about RM49 billion. In Singapore, Sunway has a development project in Sembawang called the Avant Parc and some construction projects.

Iskandar Malaysia

Sunway happens to be one of the largest property developers within the Iskandar Malaysia area in Johor. Its flagship project there is called Sunway Iskandar, a 1,800 acre development located in Medini, the central region of Iskandar Malaysia.

The entire project would include residential, commercial, retail, hospitality, education, and even medical developments. It has a GDV of about RM30 billion.

At its current price, Sunway is valued at 9.7 times earnings and 0.9 times tangible book. It also offers a 3.6% dividend yield.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn't own shares in any companies mentioned.