Sunway Construction Group Berhad (SunCon) has delivered a blockbuster financial performance for the year ended Dec 31, 2025 (FY25), with core net profits soaring by 160% to RM421.3 million. The result comfortably beat both house and market expectations by over 20%, driven by what analysts are calling an extraordinary expansion in construction margins.
Kenanga in its report noted that the group’s shares hit an all-time high of RM6.62 in trading yesterday as investors cheered a massive dividend windfall and a robust pipeline of high-tech infrastructure projects.
The standout feature of the result was a “superb” pre-tax margin of 16.0% in the fourth quarter (4QFY25), a sharp rise from the 8.8% recorded previously. This was primarily attributed to the accelerated progress of major projects, most notably the Yellowwood (JHB1X0) Data Centre in Johor and the RTS Link.
The house notes on the Phase 1 of the Yellowwood project is currently running six months ahead of its original timeline.
Faster execution allowed the group to recalibrate its margins, reflecting significant cost savings and efficiency gains.
Full-year construction pre-tax margins reached 10.0%, significantly surpassing management’s typical guidance of 5%–8%.
SunCon declared a fourth interim dividend of 9.0 sen. This brings the total dividend for FY25 to a historic 50.5 sen per share, which includes a massive 23.0 sen special dividend paid earlier in the year.
Looking ahead, SunCon is positioning itself as the primary beneficiary of Malaysia’s digital infrastructure wave. The group has set a replenishment target of RM6.0 billion for FY26, backed by a massive active tender book of RM17.5 billion.
Current Order Book Breakdown (Total: RM5.67 billion):
Data Centres: 41% (Dominant segment)
Infrastructure & Others: 59% (Including Penang LRT Package 2 and Sunway in-house jobs)
The accelerating global adoption of AI is fuelling a new wave of data centre investments across Asia,” said Managing Director Liew Kok Wing. The group is currently bidding for eight new data centre tenders exceeding a total capacity of 700MW.
