SUNWAY CONSTRUCTION GROUP BERHAD (SUNCON)

Company Profile

SunCon is no longer just another construction company. It has become Malaysia's backbone for the data centre (DC) construction boom - a fundamental transformation that has completely reshaped how investors view this business.

Sunway Construction Group Berhad (SUNCON, 5263) is listed on Bursa Malaysia under the Construction sector. The company is a subsidiary of Sunway Group, the conglomerate founded by Tan Sri Jeffrey Cheah, one of Malaysia's wealthiest entrepreneurs.

Business Segments

Geographic Footprint

SunCon operates across Malaysia, Singapore, the Middle East, and India. Malaysia remains the primary market, but the rapidly expanding data centre ecosystem is opening new opportunities across all these geographies.

Order Book Composition (April 2026)

Outstanding order book stands at RM8.7 billion as of April 2026, broken down as follows:

Shariah Compliance

✅ SUNCON is SHARIAH-COMPLIANT, making it suitable for investors following Islamic ethical investing principles.

Data Centre Milestones

SunCon has delivered 156MW of data centre capacity to date - a figure that continues to grow with each new contract signed. Of the company's RM17.5 billion tender book, more than 80% is DC-related.

Key DC contracts secured include:

• RM570 million - Johor DC project from a US technology firm (Dec 2025)
• US$335.4 million - three DC projects
• RM1.75 billion - hyperscale DC in Bandar Serendah, Selangor (April 2026) - the single largest contract in the company's history

Sunway Construction reported Q2 FY2026 net profit of RM103.59M, up 23.5% from RM83.89M a year earlier, on revenue of RM1.02B (down 31.1%). Pre-tax profit was RM131.3M. For the first half, net profit was RM222M (+39.1%) on revenue of RM2.04B (down 29.1%). The story is margin, not volume: the same profit is being made on much less billing.

Segments, Q2 FY2026

The order book stood at a record RM10.5B at end-June 2026 (RM8.16B at end-March). Net cash is about RM1.2B per UOB, lower than the RM1.69B cited in our May version after large dividend payouts.

Sunway Construction declared a second interim dividend of 4.0 sen for Q2 FY2026, payable 30 Sep 2026. That is lower than the 7.25 sen a year earlier. The first quarter carried 22.8 sen (a 7.6 sen interim plus a 15.2 sen special), so 1H26 dividends total 26.8 sen against 12.25 sen in 1H25.

UOB Kay Hian projects dividend yields of 5.2% to 6.1% for 2026 to 2028 at its reference price, supported by RM1.2B net cash.