Latest news with #SunCon
The Star
12-06-2025
- Business
- The Star
Bursa Malaysia inches up as caution reins in bulls
KUALA LUMPUR: Bursa Malaysia ended the morning session slightly higher, lifted by gains in oil and gas stocks, although overall market sentiment remained cautious amid external uncertainties. At the lunch break, the FBM KLCI rose 2.62 points or 0.17% to 1,526.46, rebounding from an intra-morning low of 1,523.22. Losers outpaced gainers 446 to 278, while 477 counters were unchanged. Turnover stood at 1.6 billion shares worth RM883.6 million. Oil and gas and related stocks were among the top gainers on Bursa Malaysia, buoyed by stronger oil prices amid escalating US-Iran tensions. Hengyuan Refining Co added 11 sen to RM1.71 while Petron Malaysia Refining & Marketing gained 10 sen to RM3.68. Dayang climbed five sen to RM1.90, Hibiscus rose five sen to RM1.55, Dialog added three sen to RM1.53 and Bumi Armada gained 0.5 sen to 48 sen. Other gainers on Bursa Malaysia included PETRONAS Gas, up 16 sen to RM17.86, Chin Tek, up 13 sen to RM8.85, Hong Leong Financial Group, up 12 sen to RM16.70, and Maybank, up nine sen to RM9.79. Among the losers, Hong Leong Industries slid 34 sen to RM13.28, F&N fell 22 sen to RM28.22, Heineken lost 14 sen to RM27.18, and Malaysian Pacific Industries declined 12 sen to RM21.20. Malacca Securities expects the FBM KLCI to trade on a softer tone, mirroring the negative performance on Wall Street. However, the research house remains positive on the construction sector, particularly on SunCon, following its recent RM1.16bil project win, which has boosted its outstanding order book to approximately RM7.9bil — representing a cover ratio of over two times its forecasted FY24 revenue. 'Traders may also focus on the O&G sector amid rising crude oil prices due to escalating geopolitical tension between US-Iran. 'Aside from healthy dividend payouts, we favour Sunway REIT for its active asset acquisition activities and defensive characteristics in weathering economic uncertainties,' Malacca Securities said. Meanwhile, TA Securities expects blue-chip stocks to extend their gains, supported by optimism over easing US-China trade tensions. However, it noted that further upside may be limited by lingering concerns over President Trump's unpredictable trade policies and the absence of clear progress on a US-Malaysia trade agreement. 'Immediate index support stays at 1,490, while stronger supports can be found at 1,465 and 1,444.
The Star
29-05-2025
- Business
- The Star
SunCon wins RM1.2bil deal
SunCon said the works are expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2025 onwards. PETALING JAYA: Sunway Construction Group Bhd (SunCon) has accepted work orders from a multinational technology company headquartered in the United States in respect of the provision of general contractor works for two data centre projects, worth RM1.16bil. In a filing with Bursa Malaysia, the company said the works are scheduled to commence immediately, with final completion expected by February 2027. 'The works will not have any effect on the share capital and substantial shareholders' shareholding of SunCon as it does not involve any allotment or issuance of new shares by SunCon. 'The works are not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon for the financial year ending Dec 31, 2025.' However, barring any unforeseen circumstances, SunCon said the works are expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2025 onwards. 'As of today, SunCon group's total outstanding order book stands at RM7.9bil. This includes new projects secured to date this year, totaling RM3.5bil, which encompasses the above mentioned works.'
The Star
29-05-2025
- Business
- The Star
SunCon wins RM1.16bil job
PETALING JAYA: Sunway Construction Group Bhd (SunCon) has accepted work orders from a multinational technology company headquartered in the US in respect of the provision of general contractor works for two projects, worth RM1.16bil. In a filing with Bursa Malaysia, the company said the works are scheduled to commence immediately, with final completion expected by February 2027. 'The works will not have any effect on the share capital and substantial shareholders' shareholding of SunCon as it does not involve any allotment or issuance of new shares by SunCon. 'The works are not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon for the financial year ending Dec 31, 2025.' However, barring any unforeseen circumstances, SunCon said the works are expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2025 onwards. 'As of today, SunCon group's total outstanding order book stands at RM7.9bil. This includes new projects secured to date this year, totaling RM3.5bil, which encompasses the above mentioned works.
The Star
20-05-2025
- Business
- The Star
SunCon posts stellar quarterly showing
SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) more than doubled its revenue and net profit in its first quarter (1Q25), driven by strong momentum in data centre (DC) and infrastructure projects, and expects sustained growth for the full year. Backed by a RM6.6bil order book and an active tender pipeline, SunCon remains confident, especially in the advanced technology facilities segment. The group has completed one DC project and is managing five ongoing projects for major multinational clients. 'While recent reports have highlighted that several global technology firms are scaling back or deferring certain DC investments across various regions, including Asean, we are pleased to report that progress at our project sites remains robust,' it noted in a recent filling. 'Likewise, our DC tender pipeline remains healthy, with several new bids released in recent weeks.' Furthermore, it said 'recent indications from the US administration to potentially revoke or revise earlier AI chip export restrictions are expected to improve market sentiment and support continued infrastructure investments'. Still, the group said it is not overly reliant on DCs, with ongoing bids in public and private sectors – including the Penang Light Rail Transit (LRT), Penang International Airport expansion, and industrial facilities – along with a steady pipeline of in-house jobs from parent Sunway Bhd . In Singapore, where over 90% of its precast sales are tied to Housing Development Board (HDB) projects, SunCon said demand remains solid. It said the HDB is targeting over 50,000 build-to-order (BTO) flat launches from 2025 to 2027. Beyond HDB developments, SunCon said its precast division has also secured two DC jobs and is expanding into industrial builds. 'Barring unforeseen circumstances, including material price fluctuations, the group is optimistic of registering positive growth for financial year 2025 based on our existing order book,' SunCon said. For 1Q25, SunCon's revenue more than doubled to RM1.4bil from RM604.8mil a year earlier. Net profit also surged, rising over two-fold to RM75.72mil from RM32.4mil in 1Q24, translating to an earnings per share of 5.87 sen versus 2.51 sen previously. SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. It said the precast segment saw revenue and profits moderate, reflecting prior year peak deliveries and ongoing project transitions. SunCon has declared a first interim single-tier dividend of five sen per share, payable on June 25. Meanwhile, in a separate filing, SunCon said its wholly-owned subsidiary Sunway Construction Sdn Bhd (SCSB) had entered into a sales and purchase agreement with Sunway Enterprise (1988) Sdn Bhd – an indirect wholly-owned subsidiary of Sunway Bhd – to dispose of construction machinery and equipment for RM8.68mil. SunCon said the proposed disposal is part of a strategic initiative to refocus on high-value project delivery and core construction competencies. SunCon said the disposal is expected to result in a gain of about RM1.3mil, with net proceeds to be used for the group's general working capital. Separately, SunCon also announced that its subsidiary, SCSB, had accepted a letter of award from K2 Strategic Infrastructure Malaysia Sdn Bhd for the final stage of a DC development project in Johor. The Stage 3 general contractor package, valued at RM260mil, brings the total contract sum for the project to RM392.7mil.
The Star
20-05-2025
- Business
- The Star
Sunway Construction's 1Q net profit soars to RM75.71mil
KUALA LUMPUR: Sunway Construction Group Bhd 's (SunCon) net profit for the first quarter ended March 31, 2025 (1Q 2025) surged to RM75.71 million, up from RM32.40 million in the same period last year. Revenue climbed 132 per cent to RM1.40 billion compared with RM604.80 million previously, underpinned by robust performance from the construction segment. In filing with Bursa Malaysia, SunCon said its construction segment delivered a remarkable improvement in performance, with revenue rising 152 per cent, from RM543.6 million in 1Q 2024 to RM1,369.9 million in 1Q 2025. "The division reported a profit before tax of RM112 million in the current quarter, nearly tripling the profit recorded in the corresponding quarter of the preceding year. "The stellar performance was fueled by accelerated progress of several data centre projects during the quarter,' it said. The group declared a single-tier first interim dividend of 5.00 sen per ordinary share for the financial year ending Dec 31, 2025. Its group managing director, Liew Kok Wing, said the positive trajectory is expected to continue, supported by accelerated progress on data centre projects, demonstrating its commitment to delivering sustainable total shareholder returns. "We continue to see a healthy pipeline of data-centre tenders. Recent indications from the United States (US) administration to recalibrate artificial intelligence (AI) chip export restrictions augur well for Malaysia, reinforcing its position as a regional hub for digital infrastructure investment. "SunCon has also announced a RM393 million data centre contract today, a positive development signifying that data-centre investment in Malaysia remains intact,' he said. Liew added that as of May 2025, SunCon had secured RM2.2 billion in new orders, achieving 49 per cent of the lower end of its 2025 order book replenishment target of RM4.5 billion to RM6.0 billion. "The group is optimistic of registering positive growth in the 2025 financial year, supported by its robust existing outstanding order book of RM6.6 billion as of March 31, 2025,' he added. - Bernama
