SunCon quarterly net profit at RM33.5mil

  • Corporate News
  • Wednesday, 20 Nov 2019

PETALING JAYA: SUNWAY CONSTRUCTION GROUP BHD’s (SunCon) posts a net profit of RM33.5mil for the third quarter ended Sept 30 compared with RM36.4mil in the corresponding quarter last year on lower contribution from its construction segment.

Consequently, its earnings per share (EPS) slid to 2.6 sen from 2.82 sen previously.

For the quarter in review, SunCon’s revenue dipped 27.8% to RM402.6mil from RM557.3mil in the previous corresponding quarter.Its construction segment reported a revenue of RM365.1mil and a pre-tax profit of RM35.4mil, compared to RM524.1mil and RM48.7mil, respectively, in the previous corresponding quarter.

SunCon said the lower revenue from the construction segment was due to the majority of its existing projects being at their initial stages, coupled with a delay in a project due to cost optimisation.

SunCon’s total new order book wins year-to-date has exceeded the group’s target for 2019.

In a statement, the construction company said its new job wins totalled RM1.73bil as at Sept 30,2019, surpassing the group’s target of RM1.5bil for the year.

SunCon also revealed that its outstanding order book totalled RM5.6bil as at end-September.

According to SunCon managing director Chung Soo Kiong, the group’s strong order book would be able to sustain the company for the next three to four years.

In addition, he said SunCon currently had a total of RM7.4bil in active tenders, and the group would expect projects in both Myanmar and India to be awarded by the first half of 2020.

“Barring any unforeseen circumstances, we expect to deliver a satisfactory performance for the last quarter of this year, ” he added.

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