SunCon earnings to be supported by RM7.4bil order book

Sunway Construction group managing director Liew Kok Wing.

KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) is optimistic about registering positive growth in the current financial year ending Dec 31, 2024 (FY24), supported by its strong outstanding order book of RM7.4bil as of June 30.

“The strong flow of new contracts in the first half of the year (1H24) has been encouraging. The group exceeded its initial order book replenishment target of RM2.5bil to RM3bil, after securing RM3.5bil worth of new orders up to August 2024.

“We are pleased to announce a higher order book replenishment target of RM4bil to RM5bil for 2024,” group managing director Liew Kok Wing said in a statement.

He said the prospects for the domestic construction sector remain promising.

In the advanced technology facilities segment, SunCon is building five data-centre projects for four multinational clients while pursuing more data centre opportunities, logistic warehouse facilities, and semiconductor manufacturing facilities locally and in the Asean region.

On the domestic front, the group is looking forward to pursuing opportunities in public sector projects, such as the Penang Light Rail Transit project and Penang International Airport expansion project, according to Liew.

SunCon posted a 17.8% higher net profit of RM39mil in the second quarter (2Q24) compared with RM33mil in the year-ago quarter.

Revenue for the quarter rose 7.8% on-year to RM651.2mil while earnings per share climbed to 3.01 sen versus 2.56 sen in 2Q23 previously.

For the six-month period, SunCon’s net profit of RM71.3mil was 17.2% higher on-year while revenue expanded 11.5% to RM1.26bil.

The group declared a first interim single-tier dividend of 3.5 sen per share for FY24.

The current year’s first interim dividend is higher than the there sen declared and paid in the same period last year.