corporate

SunCon's earnings jump 18pct to RM38.9mil in Q2

KUALA LUMPUR: Sunway Construction Group Bhd's (SunCon) net profit jumped 18 per cent to RM38.9 million in the second quarter of financial year 2024 (2Q 2024) from RM33 million a year ago.

SunCon's revenue stood at RM651 million, up 7.8 per cent from RM604 million last year driven by better performance from the construction segment.

The group declared a first interim single-tier dividend of 3.50 sen per ordinary share for the financial year ending Dec 31 2024.

For the first half of financial year 2024 (1H 2024), SunCon saw improvement in its net profit by 17 per cent to RM71 million compared with RM60.8 million previously, while the revenue increased 11.5 per cent to RM1.26 billion from RM1.1 billion.

Group managing director Liew Kok Wing said the strong flow of new contracts in the first half of the year had been encouraging.

The group exceeded its initial order book replenishment target of RM2.5 billion to RM3 billion, after securing RM3.5 billion worth of new orders up to August 2024.

Concurrently, the company set a higher order book replenishment target of RM5 billion for 2024 compared to RM4 billion previously.

"The prospects for the domestic construction sector remain promising. In the advanced technology facilities segment, SunCon is building five data centres projects for four multinational clients while actively pursuing more data centre opportunities, logistic warehouse facilities, and semiconductor manufacturing facilities locally and in the Asean region."

On the domestic front, the group is looking forward to pursuing opportunities in public sector projects, such as the Penang Light Rail Transit project and Penang International Airport expansion project, he said. 

Liew added that SunCon is optimistic of registering a positive growth in the financial year 2024, bolstered by the strong existing outstanding order book of RM7.4 billion as of June 30.

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