Sunway Construction Group Bhd began financial year 2026 on a strong note after recording a sharp increase in first-quarter earnings, supported by stronger contributions across its operating segments and continued momentum in data centre construction projects.
For the quarter ended March 31, 2026 (1QFY2026), the group reported a 56.4% year-on-year increase in net profit to RM118.41 million, compared with RM75.72 million in the corresponding quarter last year. Earnings per share rose to 8.97 sen from 5.87 sen previously.
Despite the stronger profitability, revenue declined 27% to RM1.02 billion from RM1.4 billion a year earlier. The decrease was mainly attributed to lower construction revenue, which fell 30.6% to RM950.6 million due to the higher comparative base in FY2025 when major projects such as the Rapid Transit System (RTS) Link and several data centre developments experienced accelerated progress.
On a quarter-on-quarter basis, however, SunCon’s net profit remained relatively stable compared with RM118.39 million recorded in the previous quarter, reflecting sustained operational performance.
The company also announced total dividends of 22.8 sen per share for the quarter, consisting of a first interim dividend of 7.6 sen and a special dividend of 15.2 sen. The dividend payment is scheduled for June 25, highlighting management’s confidence in the group’s cash flow position and earnings outlook.
As at March 31, 2026, SunCon’s outstanding order book stood at RM8.16 billion. The group has set a RM6 billion order replenishment target for FY2026 and has already secured RM3.59 billion worth of new contracts within the first quarter alone, surpassing the halfway mark of its annual target.
Group managing director Liew Kok Wing said the company remains cautiously optimistic about the remainder of the year, supported by its diversified portfolio of ongoing projects.
Nevertheless, management acknowledged that geopolitical tensions, rising costs and supply chain disruptions continue to pose risks to the broader operating environment.
One of the group’s key growth drivers remains its advanced technology facilities segment, particularly data centre construction. During the quarter, SunCon secured three new data centre contracts and added a new international hyperscale client to its customer base.
By end-March 2026, the company had successfully delivered over 180 megawatts of data centre capacity and was managing 10 ongoing projects for global technology clients. The group said it continues to see strong opportunities in this segment and remains actively involved in tender exercises for additional projects.
Apart from external jobs, SunCon also expects recurring contributions from in-house developments under parent company Sunway Bhd. These include hospitals, commercial buildings, integrated developments and transit-oriented projects, which are expected to provide stable construction activity and long-term earnings visibility.
Shares in SunCon closed 0.28% lower at RM7.10 on Monday, giving the group a market capitalisation of approximately RM9.4 billion. Despite the slight decline, the stock has gained nearly 25% year-to-date, reflecting positive investor sentiment towards the company’s growth prospects and strong order book position.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 18 May 26
Malaysia