Multiple catalysts to spur Sunway share price

Sunway Bhd has been on an impressive climb. The counter surged 148.8% to close at RM4.23 on July 24 - above the RM4.20 resistance.

It touched a new historical high of RM4.30 just a day earlier, giving it a market cap of above RM24 billion. Signs are pointing for a further uptrend, with near-term resistance level at RM4.50, followed by RM5.00. It is hard to imagine that the counter was trading at a 52-week low of RM1.65 a year ago.

But the attention on Sunway is not surprising as it provides investors three strong catalytic exposures. Firstly is the much talked about exposure in Iskandar Malaysia, which will boost Sunway’s multi-year growth. Sunway Iskandar sales gallery has seen its footfall doubling from last year.

The marketing team is now seeing increased foreign purchasers, especially during the weekend. Currently 10-20% of the buyers in Sunway Iskandar are foreigners while the balance 80-90% includes Malaysians working in Singapore.

Property prices in Sunway Iskandar are rising, as the indicative psf pricing for the next launch is about 20-30% higher for different types of landed products. In the pipeline, Sunway plans to roll out Sakura Phase 2 and Maple with a combined GDV RM280 million, and it may also bring forward the first launch at the Pendas land.

Secondly is the impending listing of Sunway Healthcare Group (SHG) that may take place in early 2026. SHG is expected to have a total bed capacity of 2,000 in FY26 (FY24: 1,400).

Management has also planned to bring forward its hospital development at Sunway Iskandar (with 300 beds) given the current robust demand for healthcare services.

Recently, it was also reported that Sunway is bidding for Island Hospital in Penang. Depending on the valuation, Island Hospital will provide a strategic synergy to SHG given the former’s strength in medical tourism. SHG could be worth an estimated value of RM11.2 billion.

And thirdly, perhaps more excitingly is the strong data centre (DC)-related job flows to Sunway Construction – currently makes up 50% of outstanding orderbook.

Recent DC land disposals at RM136 per sq ft to Equalbase has set a new pricing benchmark for land and properties at Sunway Iskandar and Nusajaya.

The RM8 billion JV Free Commercial Zone logistics hub development with Equalbase, upcoming data centres and hospital nearby, as well as the Cheah Fah Chinese primary school and Sunway International School are expected to help create a positive spillover to demand for properties in Sunway Iskandar in the future.

Investors should be excited about Sunway’s growth prospects and may enjoy further upside to its share price given the above factors and the group’s corporate exercise progressively show more visibility.