KUALA LUMPUR: Sunway Construction Group Bhd's (SunCon) net profit rose 32.73 per cent to RM46.47 million in the third quarter (Q3) ended September 30, 2024 from RM35.01 million a year ago.
SunCon recorded higher revenue of RM865.33 million in Q3 2024 from RM673.51 million last year.
"The increase in revenue and profitability is attributed to the construction segment," it said in its filing with Bursa Malaysia today.
For the period of nine months ended September 30, 2024 (9M24), SunCon registered a net profit of RM117.74 million from RM95.84 million, while its revenue rose to RM2.12 billion from RM1.80 billion previously.
"The increase was due to the construction segment," it said.
On its outlook, SunCon said it views the recently unveiled Federal Budget 2025 with cautious optimism.
While the budget does not introduce new major infrastructure projects, it said this underscores the government's commitment to the completion of existing initiatives, ensuring the continuity of key developments such as the Penang LRT project, Penang International Airport Expansion project and Johor Bahru–Singapore Rapid Transit System (RTS) Link.
"These projects are expected to sustain momentum within the construction sector," it said.
However, SunCon said potential challenges loom with the proposed reforms, including the increase in the minimum wage, Employees Provident Fund (EPF) contribution to foreign workers, the implementation of a multi-tiered foreign worker levy, and subsidy rationalization measures.
The company said these changes could result in higher operational costs and impact earnings.
"Nevertheless, SunCon remains committed to navigating these challenges through strategic planning and cost management," it added. Ends