This article first appeared in Capital, The Edge Malaysia Weekly on August 31, 2026 - September 6, 2026

Target price: RM9.50 BUY

AMINVESTMENT BANK (AUG 26): After excluding net one-off gains of RM200,000, Sunway Construction Group Bhd’s (KL:SUNCON) 2QFY26 core net profit increased 22% year on year (y-o-y) to RM103.4 million. This lifted 1HFY26 core net profit to RM215.8 million, accounting for 53% of our and 50% of consensus estimates. Despite a 31.1% y-o-y decline in 2QFY26 revenue to RM1 billion, core net profit margin expanded to 10.2% from 5.7%. The improvement was driven primarily by better project mix, while the lower effective tax rate of 19.4% provided additional support.

SunCon has secured RM6.9 billion of new contracts year to date, lifting its outstanding order book to a record RM10.5 billion. As more than 50% remains in early stages, we expect revenue recognition to accelerate as projects progress. Management raised its FY26 replenishment target to RM7 billion to RM9 billion from RM6 billion, in line with our RM8 billion assumption. Its RM14.2 billion active tender book supports future replenishments.

The group has completed three data centres (DCs) and is executing another 10 projects (total 330MW). Its ongoing DC tenders exceed 700MW across several projects. As DC contracts are structured on a cost-plus basis, exposure to elevated material costs is expected to be minimal. We expect execution capacity to remain manageable, supported by the ability to redeploy project teams across different sites and construction phases to ensure work continuity.

Keep “buy” with unchanged target price of RM9.50, based on 22 times PER (1 SD above 5-year historical average) and FY27F EPS of 42 sen. We believe the premium valuation is supported by its record order book, industry-leading margin profile and RM1.2 billion net cash position. The group declared a second interim dividend of four sen per share, bringing total dividends declared to 26.8 sen per share in 1HFY26.

Target price: RM1.72 BUY

CIMB SECURITIES (AUG 25): Sime Darby Property Bhd’s (KL:SIMEPROP) 1H26 headline net profit surged 49% y-o-y owing to the following exceptional items: (i) positive changes in the fair value of investment properties of RM120 million; (ii) a RM12 million gain on disposal of an investment property; (iii) a RM36 million charge pertaining to a material litigation; and (iv) a RM126 million reversal in provisions post-disposal of Sime Darby Business Centre Singapore. Stripping out these one-off items, SimeProp’s 1H26 core net profit of RM257 million was largely unchanged y-o-y, tracking in line with our expectations at 52% of our full-year forecast.

SimeProp’s 1H26 new property sales fell 10% y-o-y to RM1.8 billion, which is in line with expectations at 45% of the group’s FY26F target of RM4 billion. Momentum is further supported by a bigger 2H26 launch pipeline of RM2.7 billion and the progressive conversion of RM1 billion worth of bookings as at Aug 9.

SimeProp also announced its intention to raise the group’s stated dividend payout policy to 40% to 60% of core net profit, up from 20% currently. The higher dividend distribution target aligns with the group’s expanding portfolio of recurring-income assets under its SHIFT32 road map.

Target price: RM1.52 BUY

RHB RESEARCH (AUG 24): Aeon Co (M) Bhd’s (KL:AEON) 2Q26 revenue was broadly flat y-o-y at RM995.4 million. Property management services (PMS) revenue rose 3% y-o-y to RM200 million, while segmental profit increased by a stronger 15.1% to RM90 million, lifting the margin to 45%. Management attributed the margin expansion largely to lower property expenses following the utility tariff adjustment, while healthy occupancy, rental renewals and tenant-mix optimisation supported top line growth. Retailing revenue fell 1.2% y-o-y to RM795.4 million, as softer consumer sentiment shifted spending towards essential items and away from discretionary general merchandise stores (GMS) (hardline and softline). The segment remained loss-making in the seasonally weaker quarter, with EBIT margin deteriorating to -4.1% from -3.5% in 2Q25, also reflecting the absence of festive season-related spending this year.

We expect the top line of its PMS division to remain steady, underpinned by a stable, more-than-95% occupancy rate and positive mid-single-digit reversions. We expect the full-year PMS margin to normalise to 41%. The retailing business should remain soft, particularly in 3Q26, with management noting a more noticeable slowdown in consumer spending since June. We forecast 2H26 core earnings to decline 14% y-o-y, but the strong 1H contribution should still support a 6% FY26 earnings growth.

Target price: RM1.40 OUTPERFORM

PUBLIC INVEST RESEARCH (AUG 26): Matrix Concepts Holdings Bhd’s (KL:MATRIX) 1QFY27 revenue rose by 2.2% y-o-y to RM315.6 million, primarily attributable to higher revenue recognised across all business segments. Revenue from the group’s property development segment increased marginally by 1.5% q-o-q to RM296 million in 1QFY27, underpinned by stronger contributions from the group’s residential developments. Among others, income is generated from the group’s Klang Valley high-rise developments alongside steady contributions from Sendayan Developments and Bandari Seri Impian. Meanwhile, Malaysia Vision Valley (MVV) City contributed RM21.3 million from industrial property sales, further broadening the group’s revenue base.

Its FY27F sales target of RM1.8 billion is anchored by its next catalytic project, MVV City in Negeri Sembilan. In the Klang Valley, it will continue to focus on its existing high-rise project in Cheras, while getting ready to unveil more high-rise residential projects in Damansara and Puchong, with an estimated gross development value of RM520 million and RM610 million respectively. It secured new property sales of RM416.7 million in 1QFY27 with Sendayan Developments remaining the principal sales contributor, generating RM235.3 million, or 56.5%, of total new sales. As at June 30, 2026, the group’s unbilled sales stood at RM1.5 billion, underpinning its medium-term earnings visibility.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.