PETALING JAYA: Sunway Construction Group Bhd (SunCon) is cautiously optimistic of registering positive growth for the financial year ending 2023, based on its existing order book.
In a filing with Bursa Malaysia, the group said its outstanding order book now stands at RM5.8bil, with RM2.23bil new orders secured up to September 2023.
For the third quarter ended Sept 30, 2023, SunCon’s net profit rose to RM35mil from RM22.72mil in the previous corresponding period, while revenue grew to RM673.51mil from RM469.25mil a year earlier.
SunCon said revenue and net profit in the third quarter ended September 2023 improved for all segments. “The construction segment reported revenue of RM590.5mil and pre-tax profit of RM41.6mil, compared to revenue of RM419 million and pre-tax profit of RM35mil in the corresponding quarter of the preceding financial year.
“The higher turnover recorded in the current quarter is attributed to the accelerated progress in the newer projects.” However, SunCon said profit margin for the corresponding quarter of the preceding financial year was higher due to reversal of provision for a legal case.
For the precast segment, SunCon reported revenue of RM83mil and pre-tax profit of RM6.5mil during the quarter under review.
“Revenue improved in the current quarter driven by contributions from both the integrated construction and prefabrication hub projects and several newer projects. “This uptick in revenue has led to an increase in pre-tax profit. Additionally, the precast segment has reversal of provisions for completed projects in the current quarter, further bolstering the financial performance. Basic earnings per share in the third quarter ended September 2023 stood at 2.72 sen versus 1.76 sen previously.
For the nine-months period ended Sept 30, 2023, SunCon’s net profit improved to RM95.84mil from RM89.54mil a year earlier, while revenue increased to RM1.8bil from RM1.65bil a year earlier.
SunCon noted that the construction sector expanded by 7.2% in the third quarter of 2023, due to higher support from on-going large infrastructure projects and small-scale projects.
“On the domestic front, SunCon has formed strategic partnerships and actively participates in various tenders, particularly in warehousing and semiconductor manufacturing.” Additionally, SunCon said it remains actively involved in data centre initiatives, securing its second data centre project in Johor and actively pursuing more opportunities in this sector. “SunCon is also closely monitoring the National Energy Transition Roadmap for potential opportunities,” its said.