KUALA LUMPUR (Feb 19): Sunway Construction Group Bhd (KL:SUNCON) could deliver its strongest full-year core profit, backed by solid performance in its fourth quarter ended Dec 31, 2025 (4QFY2025), said RHB Research.

The research house expects SunCon to deliver core profit of RM340 million to RM350 million for FY2025, when its fourth quarter results is announced on Feb 23.

The record earnings are expected even as SunCon's total job wins for FY2025 of RM5.2 billion missed RHB Research's expectation of RM6 billion. The research house has reduced SunCon’s FY2025 earnings forecast by 2.9%, but lifted projections for FY2026 and FY2027 on higher job wins.

“We expect 4QFY2025 core earnings to come in between RM70-80 million, translating into year-on-year growth of 6.4-21.6%, attributed to accelerated progress billings, particularly from data centre projects in Johor,” said the research house in a note on Thursday.

SunCon's JHB1X0 data centre project in Johor is reaching 97% completion, while the PSR-MNC data centre project was 54% completed by the end of 3QFY2025.

The research house said 50% of SunCon's FY2025 project wins came from data centres.

"According to Cushman and Wakefield’s Asia Pacific Data Centre second half of 2025 update, Johor alone has 2,099 megawatts (MW) of planned capacity, which could translate into a construction value of close to RM42 billion (with construction cost per MW of RM20 million),” it said.

SunCon is also expected to win a few property projects, such as Seremban Sentral and potential expansion works for the JHB1X0 data centre in Sedenak, both of which are linked to Sunway Bhd (KL:SUNWAY).

"Key anticipated DC rollouts include Microsoft’s South-East Asia Region 3 (revealed in October 2025), which we think is related to the 370 acres of land in Johor that Microsoft purchased between 2023 and 2025," RHB Research added.

RHB Research's target price for SunCon was raised to RM7.35, based mainly on 23/5 times FY2026 earnings forecast. The stock traded at RM6.45 at the time of writing.