Latest news with #RM6.6bil
The Star
20-05-2025
- Business
- The Star
SunCon posts stellar quarterly showing
SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) more than doubled its revenue and net profit in its first quarter (1Q25), driven by strong momentum in data centre (DC) and infrastructure projects, and expects sustained growth for the full year. Backed by a RM6.6bil order book and an active tender pipeline, SunCon remains confident, especially in the advanced technology facilities segment. The group has completed one DC project and is managing five ongoing projects for major multinational clients. 'While recent reports have highlighted that several global technology firms are scaling back or deferring certain DC investments across various regions, including Asean, we are pleased to report that progress at our project sites remains robust,' it noted in a recent filling. 'Likewise, our DC tender pipeline remains healthy, with several new bids released in recent weeks.' Furthermore, it said 'recent indications from the US administration to potentially revoke or revise earlier AI chip export restrictions are expected to improve market sentiment and support continued infrastructure investments'. Still, the group said it is not overly reliant on DCs, with ongoing bids in public and private sectors – including the Penang Light Rail Transit (LRT), Penang International Airport expansion, and industrial facilities – along with a steady pipeline of in-house jobs from parent Sunway Bhd . In Singapore, where over 90% of its precast sales are tied to Housing Development Board (HDB) projects, SunCon said demand remains solid. It said the HDB is targeting over 50,000 build-to-order (BTO) flat launches from 2025 to 2027. Beyond HDB developments, SunCon said its precast division has also secured two DC jobs and is expanding into industrial builds. 'Barring unforeseen circumstances, including material price fluctuations, the group is optimistic of registering positive growth for financial year 2025 based on our existing order book,' SunCon said. For 1Q25, SunCon's revenue more than doubled to RM1.4bil from RM604.8mil a year earlier. Net profit also surged, rising over two-fold to RM75.72mil from RM32.4mil in 1Q24, translating to an earnings per share of 5.87 sen versus 2.51 sen previously. SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. It said the precast segment saw revenue and profits moderate, reflecting prior year peak deliveries and ongoing project transitions. SunCon has declared a first interim single-tier dividend of five sen per share, payable on June 25. Meanwhile, in a separate filing, SunCon said its wholly-owned subsidiary Sunway Construction Sdn Bhd (SCSB) had entered into a sales and purchase agreement with Sunway Enterprise (1988) Sdn Bhd – an indirect wholly-owned subsidiary of Sunway Bhd – to dispose of construction machinery and equipment for RM8.68mil. SunCon said the proposed disposal is part of a strategic initiative to refocus on high-value project delivery and core construction competencies. SunCon said the disposal is expected to result in a gain of about RM1.3mil, with net proceeds to be used for the group's general working capital. Separately, SunCon also announced that its subsidiary, SCSB, had accepted a letter of award from K2 Strategic Infrastructure Malaysia Sdn Bhd for the final stage of a DC development project in Johor. The Stage 3 general contractor package, valued at RM260mil, brings the total contract sum for the project to RM392.7mil.
The Star
20-05-2025
- Business
- The Star
Eversendai secures RM1.3bil in contracts
KUALA LUMPUR: Eversendai Corp Bhd has secured three projects in UAE, India and Singapore with a combined value of RM1.3bil, it announced to the stock exchange today. With the inclusion of these projects, the group's oustanding order book has risen to a record RM6.6bil. In the UAE, Eversendai Offshore has secured a project from Dragados Offshore S.A.U., Spain, for the fabrication of structural steel for the offshore converter blocks (topside) for the LanWin2, BalWin3 and LanWin4 offshore grid connection projects in Germany. The offshore grid connection systems LanWin2, BalWin3 and LanWin4 are part of TenneT's 2GW programme, which sets new standards in offshore grid infrastructure and doubles the existing transmission capacity of offshore grid connection systems. Eversendai said the blocks for the three topsides - which will be executed at the fabrication facility in Ras Al Khaimah in the UAE - will be delivered progressively by December 2027. Meanwhile, Eversendai in India has secured the Chennai International Airport's Phase II modernisation project, focused on significantly expanding the airport's capacity. It said the terminal 2 extension will add around 1.2 million square feet of space to the terminal buildings. Lastly, Eversendai has secured a contract for the construction of the New Science Centre in Singapore, with the composite building consisting of truss, columns, and beams from Level 2 to roof. "The scope for all these projects includes engineering, connection design, shop drawings, steel material supply, fabrication, delivery, erection of structural steel work," said the group.
