KUALA LUMPUR (Nov 21): Sunway Construction Group Bhd (KL:SUNCON) posted a 32.71% jump in its net profit for its third quarter on the accelerated progress of its data centre projects.

Net profit for the third quarter ended Sept 30, 2024 (3QFY2024) rose to RM46.47 million from RM35.01 million in 3QFY2023, as revenue rose 28.48% to RM865.33 million from RM673.51 million, its Thursday bourse filing showed.

The group declared a second interim dividend of 2.5 sen per share, payable on Dec 26, bringing its year-to-date payout to six sen, as opposed to three sen last year.

The accelerated progress of its data centre projects in its construction segment offset the precast segment’s lower turnover and profit during the quarter under review.

For the nine months ended Sept 30 (9MFY2024), the group's net profit rose 22.84% to RM117.74 million from RM95.84 million, as revenue climbed 17.87% to RM2.12 billion from RM1.8 billion.

Sunway Construction's outstanding order book now stands at RM7.07 billion — with RM4.03 billion new orders secured year-to-date — which meets its revised 2024 replenishment target range of RM4 billion to RM5 billion.

Included in this are the group’s five data centre projects from four multinational clients. It is proactively pursuing additional opportunities in the data centre space, it said.

“In addition, Sunway Construction is participating in various tenders within the warehousing and semiconductor manufacturing domains,” it added.

On challenges, the group pointed to the RM200 minimum wage increase, the compulsory Employees Provident Fund contribution for foreign workers, the implementation of the multi-tiered foreign worker levy, and the upcoming subsidy rationalisation measures.

“These changes could result in higher operational costs and impact earnings,” the group cautioned.

“Nevertheless, Sunway Construction remains committed to navigating these challenges through strategic planning and cost management,” it added.

Sunway Construction shares dipped seven sen or 1.56% to end Thursday at RM4.43 apiece, valuing the group at RM5.73 billion.