SunCon secures RM1.72bil in new orders for 1Q24

Sunway Construction group managing director Liew Kok Wing

KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) had secured some RM1.72bil in new orders in its first quarter of the financial year 2024 (FY24) ended March 31.

This accounts for over half of its FY24 new order book replenishment target of RM2.5bil to RM3bil, its managing director Liew Kok Wing said.

"We also continue to make good progress in data centre projects, securing contracts totaling RM808mil in the current quarter.”

He added that SunCon actively pursues opportunities in the construction of advanced technology facilities such as data centres, logistics warehousing facilities, and semiconductor manufacturing facilities.

“The group also plans to expand its regional presence in the region, particularly in the ATF sector," Liew said in a statement.

The company also noted that the prospects for major infrastructure projects are increasingly more promising, with the recent tender for the Penang Airport’s expansion and the proposed development of the Bayan Lepas Light Rail Transit.

“We are optimistic of registering a positive growth in FY24 supported by our strong existing outstanding order book of RM6.3bil as of March 31,” Liew said.

On the international front, it had recently obtained a commercial operation date for the Meensurutti-Chidambaram Highway, which marks the successful completion of its maiden highway project in India after re-entering the market in 2020.

In its first quarter, SunCon recorded a 16.5% year-on-year (y-o-y) rise in net profit to RM32.4mil on the back of revenue rising 15.8% y-o-y to RM604.8mil.

Revenue for the construction segment rose 15.9% y-o-y to RM543.6mil in the recent quarter due to higher billings from the newer projects, it said.

Pre-tax profit rose from RM36.2mil in the same quarter a year ago to RM37.9mil in the first quarter of this year.

Its precast segment recorded revenue of RM61.2mil, which is 15.5% higher than the same quarter of the preceding year, mainly due to projects at the integrated construction and prefabrication hub facilities that resulted in improved margins, it said.

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