SunCon 2Q net profit rises 24%, order book hits RM10.5b

PETALING JAYA (Aug 24): Sunway Construction Group Bhd’s (SunCon) net profit attributable to shareholders rose 23.5% to RM103.59 million for the second quarter ended June 30, 2026 (2QFY2026), from RM83.89 million a year earlier, as stronger project margins offset a sharp decline in revenue.

Revenue fell 31.1% to RM1.02 billion from RM1.48 billion, while profit before tax rose 7.1% to RM131.3 million from RM122.6 million, according to the group’s Bursa Malaysia filing on Monday (Aug 24).

The construction segment’s revenue declined 34.3% to RM941.6 million from RM1.43 billion, largely because the corresponding quarter had benefited from accelerated progress on several data centre projects.

Nevertheless, segment pre-tax profit edged up 2.8% to RM124.8 million, with its pre-tax profit margin widening to 13.3% from 8.5%. SunCon attributed the improvement mainly to a more favourable project mix, with a higher proportion of Advanced Technology Facilities (ATF) projects.

Its precast segment reported revenue of RM76.1 million, up 75.3% from RM43.4 million, while pre-tax profit increased more than fivefold to RM6.5 million from RM1.2 million, on higher contributions from ongoing projects.

First-half net profit rises 39%

For the first six months of FY2026, SunCon’s net profit rose 39.1% to RM222 million from RM159.61 million, although revenue dropped 29.1% to RM2.04 billion from RM2.88 billion.

First-half pre-tax profit climbed 21.3% to RM285.99 million, while the group’s pre-tax profit margin expanded to 14% from 8.2%.

The construction segment recorded first-half revenue of RM1.89 billion, down 32.5% year-on-year, while pre-tax profit rose 17.2% to RM273.6 million. Its pre-tax profit margin improved to 14.5% from 8.3%, which SunCon said was its strongest six-month margin on record.

The group attributed the improvement to a more favourable project mix, accelerated progress on certain projects and the reversal of a provision following the recovery of a receivable.

Meanwhile, precast revenue more than doubled to RM148.2 million from RM74 million, while pre-tax profit increased more than fivefold to RM12.4 million from RM2.4 million, driven by the ramp-up of ongoing projects and the finalisation of accounts for several projects.

Order book reaches record RM10.5 bil

SunCon said it had secured RM6.85 billion in new orders year to date, exceeding its initial RM6 billion order-book replenishment target for 2026. It has raised its full-year target to between RM7 billion and RM9 billion.

Its outstanding order book stood at a record RM10.5 billion.

In a separate Bursa filing on the same day, SunCon said Project I, involving substations for two Johor data centre projects, had generated revenue recognised and consolidated in its quarterly results. Its total contract value rose to RM865.6 million after SunCon accepted RM664.4 million of change orders on June 17.

The same filing identified Project II as an approximately RM1.02 billion mechanical, electrical and plumbing (MEP) fit-out contract for a data centre in Johor, for which a letter of award was issued on Aug 3. A further RM1.044 billion of MEP fit-out works for two projects, referred to as Project III, commenced on Aug 21, after the June 30 reporting date.

SunCon said it secured three new data centre-related projects during the first half of 2026 and continues to pursue new ATF opportunities, alongside in-house projects within Sunway Group.

The board declared a second interim single-tier dividend of four sen per share, payable on Sept 30, bringing dividends declared for FY2026 to 26.8 sen per share, including a 15.2 sen special dividend paid in June.

..........

EdgeProp monthly brings you data, insights and solutions for an evolving market. Subscribe now for your free copy!