PETALING JAYA: Sunway Construction Group Bhd
(SunCon) says its wholly-owned subsidiary, Sunway Construction Sdn Bhd, has inked an RM1.74bil agreement with an international hyperscaler to construct a hyperscale data centre (DC) in Serendah, Selangor.
In a stock exchange filing, the group said the project includes the core and shell structures, campus infrastructure and mechanical, electrical and plumbing fit-out of the facility.
The project will commence in the fourth quarter of 2026 (4Q26), and be completed in four years.
“The project is not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon for the financial year ending 2026.
“However, barring any unforeseen circumstances, the project is expected to contribute positively to the earnings of SunCon Group for the financial year ending 2026 onwards,” it said.
Earlier this week, SunCon announced that it had secured a letter of award for variation from a US-based multinational technology corporation for additional mechanical, electrical and plumbing fit out works in relation to the ongoing development of a DC located in Johor.
SunCon said the price for the variation works is approximately RM920.8mil.
It said the additional works are targeted for completion by 1Q28.
“The variation works are 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, 2026.
“As at the date of this announcement, SunCon Group has secured RM8.06bil worth of new orders during the current financial year, including the abovementioned variation works,” the company stated in a Bursa Malaysia filing on Wednesday.
SunCon’s net profit rose 23.5% to RM103.6mil in 2Q26 from RM83.9mil a year earlier, as improved margins and a favourable project mix offset lower revenue.
The firm’s quarterly revenue, however, fell 31.1% to RM1.02bil from RM1.48bil previously, as the corresponding quarter last year benefited from accelerated progress on several DC projects.
In a filing back in August, following the announcement of its 2Q26 financial performance, the group said the stronger earnings performance was supported by improved profitability across both the construction and precast segments, alongside a more favourable project mix.
For the first half of 2026 (1H26), SunCon’s net profit increased 39.1% to RM222mil from RM159.61mil a year earlier, despite revenue falling 29% to RM2.04bil from RM2.88bil.
During 1H26, the group secured three new DC-related projects and continues to pursue new advanced technology facilities opportunities.
The group remains optimistic about its performance for the current financial year, supported by its record-high order book, solid financial position and project pipeline.
