SunCon records 16.4pct more profit to RM32.4mil in Q1

KUALA LUMPUR: Sunway Construction Group Bhd's (SunCon) net profit rose 16.4 per cent to RM32.4 million in the first quarter ended March 31, 2024 (1Q24) from RM27.83 million a year ago, driven by strong performance in its construction and precast segments. 

Group revenue for the quarter grew 15.8 per cent to RM604.8 million from RM522.13 million previously. 

As a result, the group registered a higher earnings per share of 2.51 sen than the 2.16 sen in 1Q23. 

According to SunCon, its construction segment reported RM543.6 million revenue and pre-tax profit of RM37.9 million compared to a revenue of RM469.1 million and pre-tax profit of RM36.2 million in the corresponding quarter of the preceding financial year. 

The increased turnover primarily resulted from higher billings in newer projects. 

Meanwhile, the group's precast segment reported a revenue of RM61.2 million and pre-tax profit of RM3.7 million up from RM53.0 million revenue and RM1.3 million pre-tax profit previously. 

The revenue surge in the current quarter was primarily driven by contributions from ICPH projects, which were also secured with better margins. 

SunCon's outstanding order book stood at RM6.3 billion with RM1.72 billion in new orders secured up to March 2024.  

The group raised its target replenishment for 2024 to a range of RM2.5 billion to RM3 billion. 

SunCon is optimistic of registering a positive growth for the financial year ending 2024 (FY24) based on its existing order book. 

The group said it remains actively involved in the construction of advanced technology facilities (ATF).  

"The group recently secured its third, fourth and fifth data centre projects in the Klang Valley in 1Q24 and continues to proactively pursue more opportunities in the data centre sphere.  

"Additionally, SunCon is actively participating in various tenders within the warehousing and semiconductor manufacturing domains," it noted. 

SunCon said the anticipated surge in major infrastructure initiatives continues to hold promising prospects for the group.  

Apart from opportunities in both the private and public sectors, the group continues to pursue in-house pipeline projects from its immediate holding company, Sunway Bhd, particularly those involving special purpose buildings.

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