Sunway REIT Evaluation

Property Involve

1. Sunway Pyramid                           RM 2,300,000,000

2. Sunway Carnival                           RM    250,000,000

3. Suncity Ipoh Hypermarket            RM      50,000,000

4. Sunway Hotel                               RM    480,000,000

5. Pyramid Tower Hotel                   RM    270,000,000

6. Sunway Hotel Seberang J             RM      56,000,000

7. Menara Sunway                           RM    138,000,000

8. Sunway Tower                             RM    185,000,000

Total property value : RM 3.729 billion

Current Liability       : RM 1.01 billion

Fund by                      : 2.62billion units

NAV per share         : RM 0.97 per share

IPO : 1.655 billion units (62%)                              Company holding : 1 billion units (38%)

Let us compare Sunway REIT and some other REIT in Malaysia

Conclusion

Based on this analysis, Sunway REIT is not so attractive in cash flow gain (lowest div yield) compare to other REIT.

But Sunway REIT did very well in capital growth. The NAV of their properties growth 318% in 4 years time.

Since this is the IPO, probably Sunway REIT will offer at price near to NAV. In Malaysia, most of the REIT price is lower than NAV. This will probably affect on Sunway REIT market price when they start trading in Bursa Malaysia.

Note: All data source from Bursa Malaysia. This is all personal opinion and understanding.

June Information

Low P/B Ratio

1. Gula Perak
2. Petaling Tin
3. Kenmark Industrial Co
4. Advance Synergy
5. Majuperak Holding
6. Karambunai Corp
7. Golsta Synergy
8. Komarkcorp
9. Focal Aim Holdings
10. Pasdec Hldgs

Industry Average P/E Ratio

1. Consumer - 14.6
2. Construction - 15.4
3. Finance - 18.5
4. Hotel - 27.7
5. Industrial Product - 12
6. Infrastructure - 18
7. Plantation - 20.4
8. Property - 10.9
9. REIT - 6.7
10. Trade / Service - 17.3
11. Technology - 16.9

Low P/E Ratio

1. Lion Forest Industries - 1.6
2. Ranhill - 1.8
3. LCL Corp - 1.8
4. Harvest Cort Industries - 1.9
5. Advance Synergy - 2.1

High Dividend Yield

1. Hup Seng Industries - 15.8%
2. M'sia Bulk Carries - 13.5%
3. Complete Logistics Svcs - 12%
4. M3 Tech - 11.4%
5. Tek Seng Hldgs - 11.1%

The source of these information is from SHARES investment Magazine (Malaysia Edition)
http://www.sharesinv.com/

Note: Please look for the latest info update in the Monthly Info Page