KOLEJ YAYASAN PELAJARAN JOHOR

DIPLOMA IN BUSINESS STUDIES

INVESTMENT MANAGEMENT
(FIN 358)

TITLE:
THE RESULTS OF FUNDAMENTAL AND TECHNICAL ANALYSIS
FOR LISTED COMPANY OF
SUNWAY CONSTRUCTION GROUP BERHAD (5263)

PREPARED BY:
NO. STUDENT’S NAME COURSE CODE MATRIC NO.

1. SHARIFAH IZZAH BT SYED DBS4/BA111 2021271528

ISMAIL

2. NUR SYAZREEN BINTI MOHD DBS4/BA111 2021233542

JURAINA

3. NUR MIMI ZULAIKA BINTI DBS4/BA111 2021225612

ZULKARNAIN

4. NURAQILAH BINTI SAPIE DBS4/BA111 2021632776

LECTURER :
MADAM ZAHARIAH BINTI ZAINAL

DUE DATE :
14 JANUARY 2024
TABLE OF CONTENT
NO TOPIC PAGE

1. INTRODUCTION OF THE COMPANY 4

1.1 Introduction of fundamental analysis 5
1.2 Introduction of technical analysis 6-7

2. RESULTS OF FUNDAMENTAL ANALYSIS

2.1 Liquidity ratio 8
2.2 Market value ratio 9
2.3 Profitability ratio 10
2.4 Leverage ratio 11

3. RESULTS OF TECHNICAL ANALYSIS 12 - 15

4. CONCLUSION 16

5. REFERENCES 17

6. APPENDIX ( 2 YEARS FINANCIAL STATEMENTS OF 18 - 20

THE COMPANY)
ACKNOWLEDGEMENT

First and foremost, we would like to praise and thank the Almighty God for
providing us with the strength and blessing that enabled us to complete this assignment.
We would not have gotten this far without his blessing. Our group members, Nur
Syazreen binti Mohd Juraina, Sharifah Izzah binti Syed Ismail, Nur Mimi Zulaika binti
Zulkarnain, and NurAqilah binti Sapie cannot complete this assignment without their
efforts and cooperation. With our full commitment and responsibilities, we always work
hard to produce a good assignment.

As a result, we would like to express our gratitude to our lecturer, Madam

Zahariah binti Zainal, because our assignment would not have been possible without
her guidance. She is always there to support and guide us on how to complete our
assignments to achieve a positive outcome. She was a huge inspiration for us to work
on this project. We would also like to express our gratitude to her for instructing us in
this course.

Last but not least, we would like to say a thousand thanks to our parents who
also helped in making this assignment a success and contributed capital for us to run
this business, and to our campus, Kolej Yayasan Pelajaran Johor for providing us with
the opportunity to complete this writing report assignment. Finally, we would like to
thank our friends because we keep exchanging our ideas together.
1.0 INTRODUCTION OF THE COMPANY

Sunway Construction is a leading construction company in Malaysia that is listed

on the Bursa Malaysia, the country's stock exchange. The company is part of the
Sunway Group, one of Malaysia's largest conglomerates with core interests in property,
construction, education, and healthcare. Sunway Construction has a strong track record
in the construction industry and is involved in a wide range of construction projects
including building construction, civil engineering and infrastructure construction, and
related services. The company has been involved in the construction of many iconic
buildings, infrastructure projects, and developments in Malaysia and internationally.

The company's expertise spans various sectors including residential,

commercial, industrial, and institutional buildings, as well as infrastructure projects such
as highways, bridges, and mass rapid transit systems. Sunway Construction is known
for its commitment to quality, innovation, and sustainable construction practices. As a
publicly listed company on the Bursa Malaysia, Sunway Construction is subject to
regulatory requirements and is accountable to its shareholders, stakeholders, and the
public. The company's performance and financial information are publicly available,
allowing investors and the public to track its progress and developments.

Sunway Construction's presence on the Bursa Malaysia reflects its commitment

to transparency, good governance, and its contribution to the Malaysian construction
and infrastructure industry.
1.1 INTRODUCTION OF FUNDAMENTAL ANALYSIS

In investment, there are two methods which are fundamental and technical
analysis, which aid in studying and approaching the market. Fundamental research is
where we need to have access to resources in order to uncover the news and establish
estimations of intrinsic worth. Fundamental analysis investigates everything that may
impact the intrinsic value of a security by examining economic and financial issues.
Fundamental analysis includes three types of study: economic, industry, and corporate.

Investors employ economic analysis to understand how the state of the economy
affects stock values. The link between stock price and economic situation is typically
directly proportionate; for example, if the economy is robust, stock prices tend to rise. In
terms of industry analysis, it is employed in the process of making investment decisions
based on the stages of industries, since the state of the industries typically influences
the stock price. This involves an examination of economic, political, and commercial
aspects that may have an impact on the industry's development. Meanwhile, company
analysis entails the process of assessing the firm's financial statements, its competitive
advantage, gathering earnings statistics, and many other things.

Ratios are meant to possess accurate relationships in the financial statements of

things listed. Five types of financial ratios typically exist. Liquidity ratio, performance
ratio, profitability ratio, debt ratio, and price ratio are applicable. This ratio analysis is
mostly used as a tool to try and do a qualitative analysis of details in the financial
statements of a business. Ratios are measured by actual year numbers and are then
determined to gauge the company's results relative to past years, other firms, the
market, or maybe the economy.
1.2 INTRODUCTION OF TECHNICAL ANALYSIS

Stock selection is an alternative to technical analysis. As a result, it is a method

of assessing security by looking at market behaviour generated by statistics, like
previous prices and volumes. Technical analysts frequently utilise charts and other tools
to spot trends that may indicate potential behaviour rather than attempting to determine
a security's inherent value. As a result, examining historical data on prices and volumes
might also involve making predictions about future prices based on trends. To get a
rough estimate of the economic and commercial elements, analysis is not necessary.
Instead, all the information needed to predict future prices is contained in the sequence
of past prices.

Additionally, the technical analysis includes the examination of demand or market

activity through the examination of the costs and volumes of traded assets. It is the
science of documenting the actual history of trade. These reported price and volume
shifts are generalized to graphic formats after being translated to other data kinds, such
as averages. Technical analyses are therefore a type of financial analysis that makes
use of patterns in market data to identify trends and make predictions. By analyzing
statistical patterns derived from commercial activity, such as price change and volume,
this business methodology is also utilised to estimate investment and identify market
prospects.

In fact, Technical analysis is actually a straightforward process with tools

available to everyone, from novice retail traders to seasoned hedge fund managers.
Additionally, technological instruments are simpler to analyze than simple
measurements, whose interpretation often necessitates a lengthy period of rigorous
examination. The price on which it is appropriate to build any estimate of gains or losses
is the lone needle in the technical trader's compass, given that technical analysis solely
depends on market action. A technical method can help investors understand when to
enter and exit the market, which is one of the benefits of technical analysis. Other than
that, flexibility and adaptability refer to any international stock exchange, where
technological analysis may be used while applicable to the different time dimensions is
where technical analysis may be used during a trading day and be able to create minute
or hourly charts.

As a result, we use line charts for technical analysis. A line chart gives traders
like us a simple way to see how the price of a securities has changed over time. The
line chart is very easy to comprehend. We can easily compare the indices or prices of
various securities on the same graph as a result.
2.0 RESULT OF FUNDAMENTAL ANALYSIS

1) LIQUIDITY RATIO :

FORMULA 2021 COMMENT

Current ratio In 2021 Sunway

corporation is 1.02 times
Current assets RM 1,014,796 better. This shows the
Current liabilities RM 992,011
company has sufficient
= 1.02 times current assets to meet its
short term obligations.

FORMULA 2022 COMMENT

Current ratio In 2021 Sunway

corporation is 1.48 times
Current assets RM 1,637,362 better. This shows the
Current liabilities RM 1,103,329
company does not have
= 1.48 times sufficient current assets to
meet its short term
obligations.
2) MARKET VALUE RATIO :

FORMULA 2021 COMMENT

Dividend per share In 2021 Sunway

corporation dividend per
Annual dividend RM 51,574 share is low which is
No. of shares RM 258,580 RM0.20 per share. So it
may not encourage
= RM 0.20 per share investors to invest in the
business.

Price-earnings ratio In 2021 Sunway

Corporation price earning
Market price RM 1,7220 ratio is 0.34 times. A low
Earning per shares RM 5.01 price earning ratio might
indicate that the current
= 0.34 times stock price is low relative
to earnings.

FORMULA 2022 COMMENT

Dividend per share In 2022 Sunway

corporation dividend per
Annual dividend RM 90,255 share is high which is
No. of shares RM 258,580 RM1.48 per share. So it
will encourage investors to
= RM 1.48 per share invest in the business.

Price-earnings ratio In 2022 Sunway

Corporation price earning
Market price RM 1,620 ratio is 457.63 times. A
Earning per shares RM 3.54 high price earning ratio
mean that a stocks price is
=457.63 times high relative to earnings
and possibly overvalued.
3) PROFITABILITY RATIO :

FORMULA 2021 COMMENT

= RM 84,868 / In the 2021 profitability

RETURN ON EQUITY RM 716,771 x 100% ratio, the Sunway
construction gives a great
Net profit = 11.84% effect because the
Total equity company is able to
generate its profits with
their shareholder, also with
its total assets.

RETURN ON ASSET = RM 84,868 /

RM 1,864,215 X 100%
Net profit
= 4.55%
Total assets

FORMULA 2022 COMMENT

= RM 64,331 / RM 820,794 In 2022 it is obvious that

RETURN ON EQUITY x 100% Sunway construction profit
is decreasing than 2021.
= 7.84% This means that Sunway
Net profit construction assets did not
Total equity work well and shows that
the company growth is not
getting better than 2021.

Net profit
Total assets
RETURN ON ASSET
= RM 64,331 /
RM 2,236,048 x 100%

= 2.88%
4) LEVERAGE RATIO :

FORMULA 2021 COMMENT

= Long term debt / In 2021 Sunway

(total asset - total corporation is 0.21 times
liability) better .This shows the
DEBT TO EQUITY RATIO
company reflects a higher
= RM 152,547 / amount of debt to the
Long term debt (RM 1,864,215 - RM shareholder.
Equity 1,147,444)

= RM 152,547 / RM
716,771

= 0.21 Times

FORMULA 2022 COMMENT

= Long term debt / In 2022 Sunway

(total asset - total liability) corporation is 0.38 times
DEBT TO EQUITY RATIO more decreasing than in
= RM 308,541 / 2021. This shows the
( RM 2,236,048 - RM
Long term debt 1,415,254)
company gains a lower
Equity amount of debt to the
= RM 308,541 / RM 820794 shareholder.

= 0.38 Times
3.0 RESULT OF TECHNICAL ANALYSIS

1. DAILY TREND (SHORT-TERM TREND)

Short-term trading is a technique that attempts to establish and close a position

in a short period of time, usually days or weeks, but it can be less. This trading
approach is popular among individual and institutional traders who want to profit from
small price changes and short-term trends.

Day trading requires a deep understanding of markets, financial products, and

strategies and involves careful monitoring of markets and news. For example, not only
do we need to decide what to trade and when is the best time to do it, but we also need
to think about how much capital we need, what equipment and software is needed, and
how to adequately manage our risk.

Day trading is not suitable for people who are just starting a business, but they
already understand this because it can bring risks and if they can live with those risks.
There are pros and cons of day trading, the pros are all trades need to be closed at the
end of the day, and day traders don’t need to worry about an overnight news event
causing significant moves to their positions while the cons are the number of trades,
trading costs in the form of commissions and fees will quickly add up, potentially cutting
into our profits

Starting 4th January 2022 until 25 January 2022 equivalent to 21 days is where
the secondary trend for the company Sunway Construction Berhad. The share price of
Sunway Construction Berhad shows a downward movement in the period of 21 days
and this means that the market for Sunway Construction Berhad is a bearish market
from 1.54 to 1.45.

Based on my research, we found a slight downward trend in November.

Following a news article on Sunway Construction Group Bhd, which is a move to
increase market share strength. The senior managing director of Sunway Construction
said that its debut trading day at 5.8% or 7 above the initial public offering (IPO) price of
RM1.27 was used to increase local construction marketing due to its ability and track
record as well as the strong support of the parent company. He also said that they took
on a project to build an MRT theme park, Legoland, and Pinewood studio so that the
group's income would be better next year.
 2. SECONDARY TREND (MEDIUM-TERM TREND)

The secondary trend, on the other hand, is a correction or reversal within the
primary trend. If the primary trend is upward, the secondary trend would be a temporary
downward movement in prices before the upward trend resumes. Conversely, if the
primary trend is downward, the secondary trend would be a temporary upward
movement before the downward trend continues.

Secondary trends are also known as "corrections" or "retracements" and are a

natural part of price movements in financial markets. They provide opportunities for
traders and investors to enter or add to positions within the context of the primary trend.
Recognizing and understanding secondary trends is important for traders who employ
trend-following strategies, as it can help them make informed decisions about when to
enter or exit trades. The secondary trend lasts from around three weeks to months but
normally less than a year.
 Starting from 18th August 2022 until 24th November 2022 equivalent to 4 months
is where the secondary trend for Sunway Construction Berhad company. The share
price for Sunway Construction Berhad company shows a downward movement within 4
months and that means the market for Sunway Construction Berhad company is a
bearish market.

Based on the analysis that we did, the trend slightly increased in November.
Followed the news article about Sunway Construction Group Bhd, which is optimistic
about the construction sector's recovery in Malaysia. The company's managing director,
Liew Kok Wing, stated that the sector is making reasonable headway in mega
infrastructure investments and increased demand in e-commerce, cloud computing, and
microchips. The company reported a surge in revenue and a higher net profit for the
third quarter ended Sept 30, 2022, compared to the same quarter in 2021. The
construction segment contributed 63.8% higher revenue due to the normalization of
works at full capacity following the economy's transition into the endemic phase.

Those other news reports about Sunway Construction Group Bhd's financial
performance for the third quarter of 2022. The company's net profit increased by
17.72% to RM22.72 million due to higher revenue contributions from its construction
and precast segments. Sunway Construction's quarterly revenue surged 72.47% to RM
469.25 million from RM272.08 million in the same period a year ago driven by improved
performance across all segments. The article also mentions that MIDF Research
reiterates their 'Buy' call on SunCon with an unchanged target price of RM1.87.
4.0 CONCLUSION
Sunway Construction Berhad is a leading construction company in Malaysia with a
strong track record of delivering high-quality projects across various sectors. As the
company continues to expand its operations and explore international opportunities, it is
essential to carefully consider the implications of trade on its future growth and
sustainability.

In conclusion, as Sunway Construction Berhad engages in trade activities, it should

leverage its expertise and capabilities to capitalize on emerging opportunities in regional
and global construction markets. By fostering strategic partnerships, adapting to
international regulations and standards, and embracing innovative construction
practices, Sunway Construction Berhad can position itself as a competitive player in the
global construction industry while contributing to the growth and development of
Malaysia's construction sector.

Additionally, the company should remain vigilant of potential risks and challenges
associated with international trade and implement robust risk management strategies to
safeguard its operations and investments. Through a proactive and informed approach
to trade, Sunway Construction Berhad can enhance its reputation as a reliable and
proficient construction partner while driving sustainable value for its stakeholders.
5.0 REFERENCES

● Company Announcements. (n.d.). Www.bursamalaysia.com.

https://www.bursamalaysia.com/market_information/announcements/company_a
nnouncement

● ‌Akmar Anuar, Wednesday (2022, November. 23). Sunway Construction’s

net profit rises 18% on higher revenue from construction,precast, segments.
https://themalaysianreserve.com/2022/11/23/sunway-constructions-net-profit-rise
s-18-on-higher-revenue-from-construction-precast-segments/

● Online, S. (2022, November 22). Sunway Construction cautiously optimistic of

positive growth in 2022. The Star.
https://www.thestar.com.my/business/business-news/2022/11/22/sunway-constru
ction-cautiously-optimistic-of-positive-growth-in-2022

● Short-Term Trading: Strategies, Examples & Tips | CMC Markets. (n.d.).

https://www.cmcmarkets.com/en/trading-guides/short-term-trading

● Sunway Construction focuses on 3 strengths to increase market share. (n.d.).

The Edge Malaysia.

https://theedgemalaysia.com/article/sunway-construction-focuses-3-strengths-inc

rease-market-share

● Yahoo is part of the Yahoo family of brands. (n.d.).

https://finance.yahoo.com/quote/5263.KL/balance-sheet?p=5263.KL
6.0 APPENDIX : ( 2 YEARS FINANCIAL STATEMENTS OF THE COMPANY)

INCOME STATEMENT
STATEMENT OF FINANCIAL POSITION
BALANCE SHEET
MARKET PRICE FOR END YEAR 2021

MARKET PRICE FOR END YEAR 2022