KUALA LUMPUR (Feb 26) — Shares of Sunway Bhd climbed to fresh all-time highs following the release of solid FY2025 earnings that met market expectations.
The diversified group — spanning property, construction, healthcare and infrastructure — saw its share price rise as much as 3% to RM6.02 in early trading before easing slightly. At around RM5.97, the company commands a market capitalisation close to RM41 billion.
Over the past 12 months, Sunway’s stock has advanced approximately 27%, supported by optimism surrounding its strong exposure to data centre construction and major infrastructure projects nationwide.
Earnings Supported by Record Revenue
For the financial year ended Dec 31, 2025 (FY2025), Sunway reported:
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Net profit rising 13% to RM1.3 billion
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Revenue reaching a record RM9.81 billion
The performance was underpinned by robust contributions across its core divisions, particularly construction projects linked to advanced-technology facilities and infrastructure development.
Data centre-related contracts now account for more than half of the group’s construction order book, reinforcing its exposure to Malaysia’s expanding digital and industrial infrastructure ecosystem.
Analysts Turn Cautious After Rally
Despite the strong performance, several research houses believe the recent rally has already priced in much of the near-term upside.
CIMB Securities maintained a “hold” recommendation, noting that most of the positive developments are already reflected in the current valuation. However, it highlighted that a successful takeover of IJM Corporation Bhd could act as a potential re-rating catalyst.
Meanwhile, MBSB Research kept a “neutral” stance, citing fair valuation levels at present. It pointed to the upcoming listing of Sunway Healthcare Group Bhd as a near-term catalyst, although it sees limited immediate upside.
Currently, among analysts tracked by Bloomberg, there are nine “hold” calls, three “buy” calls and one “sell” call — largely unchanged from the previous month. Notably, the stock is trading above the consensus target price of RM5.82 following its latest results.
Dividend-in-Specie and Healthcare Listing
Sunway has set March 11 as the entitlement date for its previously announced dividend-in-specie exercise, tied to the proposed listing of Sunway Healthcare targeted for March 2026.
Under this plan, shareholders will receive one Sunway Healthcare share for every 10 Sunway shares held.
This corporate exercise is part of a broader strategy to unlock value within its diversified portfolio.
What This Means for KL & Selangor Industrial and Commercial Property
Sunway’s performance has broader implications beyond equity markets — particularly for stakeholders involved in:
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Industrial land in Selangor
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Industrial property in Subang area
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Factory in Puchong
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Office space in Bukit Jalil
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Commercial property in KL
A significant portion of Sunway’s growth is tied to advanced industrial facilities and data centre projects. These developments strengthen Selangor’s position as Malaysia’s leading industrial state, particularly in high-spec infrastructure requiring reliable power, connectivity, and logistics access.
As data centre construction expands, secondary demand typically follows — including supplier facilities, engineering offices, and logistics hubs. This supports ongoing demand for industrial land in Selangor and modern factory space in Puchong and Subang.
In Kuala Lumpur, corporate expansion linked to infrastructure and healthcare growth may also reinforce demand for quality commercial property in KL and decentralised office space in Bukit Jalil.
Bigger Picture: Industrial & Infrastructure-Led Growth
Sunway’s record-high valuation reflects investor confidence in Malaysia’s infrastructure cycle and digital economy expansion. While analysts remain cautious about short-term price appreciation, the underlying drivers — data centres, large-scale construction, and corporate restructuring — signal sustained activity across industrial and commercial segments.
For investors and property owners focused on Klang Valley, the takeaway is clear:
corporate earnings tied to infrastructure and advanced facilities continue to support long-term fundamentals for industrial property in Subang area and surrounding Selangor growth corridors.
As Malaysia’s industrial ecosystem matures, large integrated groups like Sunway remain closely linked to the broader performance of KL and Selangor’s commercial and industrial property markets.
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