KUALA LUMPUR: Sunway Bhd's earnings will be sustainable despite the deterioration in the property market, said MIDF Research.
In a note today, it said Sunway will be helped by the higher construction orderbook replenishment as well as consistent earnings from the property investment segment.
"Construction earnings contribution will improve substantially in financial year 2013 as the light rail transit and My Rapid Transit (MRT) move into a more advanced stage of construction," it said.
MIDF said construction orderbook replenishment of Sunway has exceeded its initial target of RM1.5 billion and year-to-date, the company has secured RM1.6 billion worth of construction works which also included some internal jobs.
"The MRT package V4 from Section 17 to Semantan accounted for 73 per cent of year-to-date replenishment," it said.
It said Sunway's property investment segment will continue to receive consistent earnings distribution and real estate investment trust (REIT) management fees from Sunway REIT
MIDF Research has maintained its 'buy' call on Sunway with an unchanged target price of RM2.60.