Sunway is poised for substantial growth with upcoming developments in Iskandar Malaysia, a potential early 2026 IPO for Sunway Healthcare Group, and strong data centre projects, according to RHB Investment Bank (RHB). The company's ongoing expansion in healthcare, highlighted by an increase in bed capacity and potential acquisition of Island Hospital, is expected to significantly enhance its market presence. Additionally, recent data centre-related land transactions are setting new pricing benchmarks, indicating a positive outlook for Sunway's property division.

RHB has maintained its BUY rating on Sunway with a revised target price of MYR5.00, which represents a 22% potential upside from the current price. This revised target reflects the investment bank's confidence in Sunway's ability to leverage its strategic developments and corporate initiatives to drive future growth.

The investment bank emphasised Sunway's aggressive expansion plans, including the accelerated IPO for Sunway Healthcare Group, which is anticipated to take place in early 2026. This move is part of Sunway's broader strategy to expand its healthcare division, aiming to reach a total bed capacity of 2,000 by FY26, up from 1,400 in FY24. Moreover, the strong demand for healthcare services and potential strategic acquisitions are expected to boost Sunway's growth prospects.

The analyst also noted that the company's property division benefits from a buoyant market in Iskandar Malaysia, with increased foreign and local buyer interest leading to rising property prices. Sunway's sales gallery traffic has doubled from the previous year, and the company plans to launch new developments such as Sakura Phase 2 and Maple, with a combined Gross Development Value (GDV) of MYR280m. These developments are anticipated to further enhance Sunway's property segment performance.

RHB's report reflects a positive outlook for Sunway, driven by its strategic expansion in key sectors and strong market demand. Analysts remain optimistic about the company's growth trajectory and recommend buying the stock to capitalise on the anticipated gains.