Sunway Construction Group Bhd (SunCon) saw its shares slip 1.5% to RM5.26 at midday, down 8 sen from the previous close, with 5.1 million shares changing hands. The counter opened at RM5.36 and traded between RM5.21 and RM5.36 during the session.
The pullback comes despite an upbeat outlook for the construction sector, following recent data from Hong Leong Investment Bank (HLIB) that highlighted robust domestic contract awards, totalling RM27.5 billion in the first half of 2025, a 33% increase from a year ago. SunCon was among the beneficiaries of large-scale contracts in the second quarter, including a RM1.16 billion design-and-build job for two hyperscale data centres.
Analysts remain positive on SunCon due to its strong order book and competitive positioning in securing data centre and infrastructure projects. HLIB continues to maintain a “Buy” call on the stock with a target price of RM6.70, citing expectations of sustained contract flows in the second half of 2025 driven by data centre demand and infrastructure rollouts.
The broader construction sector is also expected to remain resilient, supported by mega projects such as the Penang LRT and new expressway packages, alongside private sector participation. However, analysts caution that uncertainties around the Sales and Service Tax treatment on commercial projects could weigh on sentiment in the near term.
