Sunsuria is the developer of a new township next to KLIA, known as SunsuriaCity
. This township is relatively small with a land size of 525 acres. Its estimated Gross Development Value is only RM10 billion.
The main attraction for SunsuriaCity
is the XiamenUniversityMalaysia
. In addition, the township has good connectivity, and it’s still not fully developed yet. For more on SunsuriaCity
, go here.
Sunsuria City- Master Plan
Sunsuria City- Connectivity
Recent Financial Performance
For QE30/9/2018, Sunsuria’s net profit dropped 2.6% q-o-q or 17.7% y-o-y to RM24.9 million while revenue rose 24% q-o-q or 24% y-o-y to RM134 million. See accompanying table. The result for QE30/9/2018 was announced on November 27 last year. The next quarterly result will be for QE31/12/2018, which is expected to be announced end of February.
Table: Sunsuria’s last 8 quarterly results
Past 5 years’ Financial Performance
Despite the slowdown in property market, Sunsuria is able to maintain its revenue at about RM120-140 million a quarter in the past 7 quarters. Its net profit is also fairly stable at RM40 million over the same periods.
Graph: Sunsuria’s last 42 quarterly results
As at 30/9/2018, Sunsuria’s financial position is deemed healthy with good current ratio at 3.5x while slightly elevated gearing ratio at 0.6x.
Sunsuria (closed at RM0.63 last Friday) is now trading at a trailing PE of 5 times (based on last 4 quarters’ EPS of 12.7 sen). At this PE, Sunsuria is deemed fairly valued.
Sunsuria share price peaked at RM1.60 in July 2017. It has lost nearly RM1.00 in the past 18 months despite relatively stable revenue and profits. At 63 sen a-piece, Sunsuria is now trading a mere 30 sen above the price paid by the new management when it took over the company- previously named Malaysian Aica Bhd.
Chart: Sunsuria’s weekly chart as at Feb 18, 2019_11.00am (Source: Malaysiastock.biz)
Based on good financial performance, fairly attractive valuation and deeply discounted share price, Sunsuria is a good property stock to consider for a recovery play.
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