Sunway Construction starts FY2026 on strong footing, declares total dividend of 22.8 sen

KUALA LUMPUR (May 18): Sunway Construction Group Bhd (KL:SUNCON) kicked off the financial year ending Dec 31, 2026 (FY2026) on a strong footing, with higher contributions across all operating segments driving a sharp increase in first-quarter earnings, while the group rewarded shareholders with total dividends of 22.8 sen per share.

The builder reported a 56.4% year-on-year (y-o-y) jump in net profit for the quarter ended March 31, 2026 (1QFY2026), to RM118.41 million from RM75.72 million a year earlier. Earnings per share rose to 8.97 sen from 5.87 sen previously.

Quarter-on-quarter, however, net profit was largely unchanged from RM118.39 million recorded in the preceding quarter.

Revenue for 1QFY2026 declined 27% to RM1.02 billion from RM1.4 billion a year earlier, mainly due to a 30.6% drop in construction revenue to RM950.6 million. The stronger comparative quarter in FY2025 was driven by accelerated progress on the Rapid Transit System Link project and several data centre projects.

SunCon declared a total dividend of 22.8 sen per share for 1QFY2026, comprising a first interim dividend of 7.6 sen and a special dividend of 15.2 sen, payable on June 25.

The group’s outstanding order book stood at RM8.16 billion as at March 31, 2026. SunCon has set a RM6 billion replenishment target for FY2026 and has already secured RM3.59 billion in new jobs, surpassing the halfway mark within the first quarter.

In a statement on Monday, group managing director Liew Kok Wing said the group remains “cautiously optimistic” about its prospects for the rest of the year, underpinned by its diversified order book.

Still, he cautioned that geopolitical uncertainties, cost inflation and supply-chain disruptions remain key risks to the operating environment.

SunCon’s advanced technology facilities segment continued to gain traction, with the group securing three new data centre contracts and adding a new international hyperscale client. As at end-March 2026, the group had delivered more than 180 megawatts of data centre capacity and was managing 10 ongoing projects for global technology customers.

The group said it continues to see strong opportunities in data centre construction and remains actively involved in new tender exercises, positioning the segment as a major growth driver.

SunCon is also pursuing a steady pipeline of in-house projects from parent Sunway Bhd (KL:SUNWAY), including hospitals, integrated developments, commercial buildings and transit-oriented developments, which it said would provide recurring construction activity and earnings visibility.

Shares of SunCon closed 0.28% lower at RM7.10 on Monday, valuing the group at RM9.4 billion. The stock has gained nearly 25% year to date.

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