KUALA LUMPUR: Sunway Construction Group Bhd
’s (SunCon) net profit for the first quarter ended March 31, 2025 (1Q 2025) surged to RM75.71 million, up from RM32.40 million in the same period last year.
Revenue climbed 132 per cent to RM1.40 billion compared with RM604.80 million previously, underpinned by robust performance from the construction segment.
In filing with Bursa Malaysia, SunCon said its construction segment delivered a remarkable improvement in performance, with revenue rising 152 per cent, from RM543.6 million in 1Q 2024 to RM1,369.9 million in 1Q 2025.
"The division reported a profit before tax of RM112 million in the current quarter, nearly tripling the profit recorded in the corresponding quarter of the preceding year.
"The stellar performance was fueled by accelerated progress of several data centre projects during the quarter,” it said.
The group declared a single-tier first interim dividend of 5.00 sen per ordinary share for the financial year ending Dec 31, 2025.
Its group managing director, Liew Kok Wing, said the positive trajectory is expected to continue, supported by accelerated progress on data centre projects, demonstrating its commitment to delivering sustainable total shareholder returns.
"We continue to see a healthy pipeline of data-centre tenders. Recent indications from the United States (US) administration to recalibrate artificial intelligence (AI) chip export restrictions augur well for Malaysia, reinforcing its position as a regional hub for digital infrastructure investment.
"SunCon has also announced a RM393 million data centre contract today, a positive development signifying that data-centre investment in Malaysia remains intact,” he said.
Liew added that as of May 2025, SunCon had secured RM2.2 billion in new orders, achieving 49 per cent of the lower end of its 2025 order book replenishment target of RM4.5 billion to RM6.0 billion.
"The group is optimistic of registering positive growth in the 2025 financial year, supported by its robust existing outstanding order book of RM6.6 billion as of March 31, 2025,” he added.
Meanwhile, SunCon's wholly owned subsidiary, Sunway Construction Sdn Bhd, has won a RM260 million data centre project in Johor from K2 Strategic Infrastructure Malaysia Sdn Bhd.
In a Bursa Malaysia filing today, SunCon said the contract awarded was the stage 3 (final stage) general contractor package works, which is in addition to the project's stage 1 and stage 2 packages accepted on Feb 10, 2025.
It said the entire project was valued at RM392.7 million and is targeted for completion by March 2026.
SunCon said the project is not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon Group for the financial year ending Dec 31, 2025.
"However, barring any unforeseen circumstances, the project is expected to contribute positively to the earnings of SunCon Group for the financial year ending Dec 31, 2025 onwards," it said. - Bernama
