PETALING JAYA: Sunway Construction Group Bhd
(SunCon) is anticipated to report record-high earnings for its financial year 2025 (FY25), on the back of steady data centre-related jobs.
An analyst said Malaysia’s data centre industry is experiencing strong momentum, supported by rising demand for cloud computing, artificial intelligence and digital services.
“The market is projected to expand significantly over the next decade, with steady investment from global technology companies and regional operators. This will bode well for a company like SunCon,” he told StarBiz.
RHB Investment Bank in a recent report said SunCon is slated to announce its financial results for the fourth quarter of FY25 (4Q25) this week.
“We expect 4Q25 core earnings to be between RM70mil and RM80mil (which translates into year-on-year growth growth of 6.4% to 21.6%).
“Hence, we envisage a full-year FY25 core profit of RM340mil to RM350mil – a record high. We view the strength in 4Q25 to come from accelerated progress billings, mainly from its data centre projects.”
RHB noted that as of the end of September 2025, the JHB1X0 data centre project (plus tenant improvement works) worth RM4.1bil in Johor saw progress reaching 96.7% and should be completed by end-4Q25.
“Aside from that, the PSR-MNC data centre job worth RM778mil (awarded in March 2024 and targeted for completion in 1Q27) was 54% completed as of end-3Q25.
“We observed that in 3Q25, 24.5% of the project was recognised between 2Q25 and 3Q25 versus previous periods with recognition levels below 10%.”
RHB said it is not discounting the possibility of the PSR MNC job’s individual recognition in 4Q25 to be circa 20% (bringing the cumulative completion as of end-4Q25 to circa 74%).
The research house said total new job wins for FY25 stood at RM5.2bil (versus its initial expectations of RM6bil) with around 50% coming from data centre contracts.
“According to Cushman and Wakefield’s Asia Pacific Data Centre second half 2025 Update, Johor alone has 2,099MW of planned capacity – which could translate into a construction value of around RM42bil (with a construction cost per MW of RM20mil).
“Key anticipated DC rollouts include Microsoft’s South-East Asia Region 3 (revealed in October 2025), which we think is related to the 370 acres of land in Johor that Microsoft purchased between 2023 and 2025.”
RHB said other potential upcoming wins may stem from Sunway Bhd’s related property projects such as Seremban Sentral, coupled with potential expansion works for JHB1X0 DC in Sedenak (Johor), which has a total planned capacity of 200 to 300 MW.
The research house said it is reducing SunCon’s FY25 earnings forecast by 2.9% to reflect the actual FY25 wins.
