KUALA LUMPUR (Sept 10): Sunway Construction Group Bhd (KL:SUNCON) could win an estimated RM1 billion in podium and tower contracts for an integrated mixed-use development at the Bukit Chagar RTS Link, Johor Bahru, according to Maybank Investment Bank.

The research house noted that the potential win came from a joint venture development between its parent company, Sunway Bhd (KL:SUNWAY), and Mass Rapid Transit Corporation (MRT Corp), which could increase Sunway Construction’s overall net profit by about RM60 million.

Consequently, Maybank IB mantained its “buy” call and RM9.62 target price, pegged to 17.7 times the financial year ending Dec 31, 2027 (FY2027) estimated price earnings.

Previously, Sunway Construction had secured a RM1.5 billion contract to undertake construction works for the rapid transit system (RTS) transit-oriented development at Bukit Chagar, Johor, in a related-party transaction last year.

At the time of writing, Sunway Construction shares were down three sen or 0.38% at RM7.95, valuing the company at RM10.6 billion.

Analysts estimate that the total development value surrounding the Bukit Chagar station will reach a combined RM11 billion across the three largest surrounding projects.

The commercial opening of the RTS Link in late 2026 or early 2027 is widely anticipated to catalyse property demand and accelerate construction timelines in the zone.

The three anchor projects driving the node represent a combined gross development value of RM11.1 billion, consisting of the RM5 billion Coronation Square, the RM3.5 billion Causewayz Square, and the RM2.6 billion Sunway-MRT Corp integrated development.

Of the trio, Coronation Square — an eight-tower integrated hub comprising offices, residential units, medical facilities, and an Ascott hotel — is slated for completion by 2029.

Meanwhile, the wider Sunway-MRT Corp integrated development will be phased over eight years, with its primary components targeted for completion between 2033 and 2036.

Causewayz Square, a high-density mixed residential and retail project developed by EXSIM Group, is targeted for full completion by December 2030.

Maybank IB highlighted the project's significance for Binastra Corporation Bhd (KL:BNASTRA), noting that the RM1.3 billion worth of contracts secured from this development accounts for approximately 20% of the builder's outstanding order book.

Within this package, the main RM1.2 billion construction job is projected to contribute roughly RM90 million to the group's net profit.

At the time of writing, Binastra Corporation shares were down one sen or 0.4% at RM2.47, valuing the company at RM2.7 billion.

The proposed 50km elevated transit network will comprise 32 stations across the Skudai, Tebrau and Iskandar Puteri corridors, converging at the Bukit Chagar station.

It will serve as the RTS Link’s feeder and last-mile connection, dispersing up to 10,000 cross-border passengers per hour into the Johor Bahru area.