OSK keeps 'buy' call on Sunway

Sunway Bhd shares gained four sen to RM2.50 with 243,800 shares traded
as at 10.20am today after its wholly-owned subsidiary, Sunway
Geotechnics (M) Sdn Bhd, secured a RM27.57 million contract from Hap
Seng Land Development (JTR) Sdn Bhd.

The contract is for the
proposed construction and completion of earthworks and piling for
basements one and two and ground floor reinforces concrete structures
for a 43-storey service apartment at Jalan Tun Razak, Kuala Lumpur.

OSK
Research viewed the contract positively although the size was small
relative to the other contracts Sunway had secured earlier in the year.

"More
importantly, it was in line with Sunway's intention to focus more on
niche and specialised contracts for its construction division following
the completion of its merger," it said in a research note today.

Sunway's construction orderbook valued at about RM2.8 billion will last it for at least another 1.5 years.

Nevertheless, it is continuously bidding for more contracts with an order book replenishment target of RM1.5 billion, annually.

"We
believe it stands a good chance of securing more contracts from
Iskandar Region for next year as well as potential contracts from the KL
MRT project, further supported by its good track record," OSK Research
said.

It maintained a buy recommendation on Sunway at an unchanged fair value of RM3.31 per share. -- Bernama