KUALA LUMPUR (Aug 25): Sunway Construction Group Bhd (KL:SUNCON) has raised its 2026 order book replenishment target to between RM7 billion and RM9 billion from RM6 billion previously, after securing RM6.85 billion in new orders year to date. Its outstanding order book has reached a record RM10.5 billion, providing strong earnings visibility.
Maybank Investment Bank Research said it is maintaining its earnings forecasts for the financial years ending Dec 31, 2026 to 2028 (FY2026-FY2028) based on an annual job win assumption of RM8 billion for Sunway Construction. The research house sees further upside to earnings if the construction group secures more contracts, noting that every RM1 billion increase in its job win assumption could lift long-term earnings estimates by about 10% to 11%.
Sunway Construction hopes to secure more mechanical, electrical and plumbing (MEP) jobs from an existing client and a second data centre job for core-and-shell and MEP works from its current client in Serendah, Selangor worth RM1.8 billion. It also expects about RM600 million of internal jobs from Sunway Group.
In an Aug 25 report, the research house expects quarterly earnings to remain strong as construction activity accelerates across Sunway Construction’s data centre projects. These include the Serendah project, comprising RM1.75 billion in core-and-shell and MEP works, RM1.02 billion of MEP works in Johor and RM1.44 billion worth of MEP works in Cyberjaya and Bukit Jalil.
Sunway Construction’s net profit rose 23.5% year-on-year to RM103.59 million in 2QFY2026 from RM83.89 million, taking first-half net profit to RM222 million, equivalent to 50% of Maybank IB Research’s full-year estimate.
Maybank IB Research reiterated its “buy” call and RM9.62 target price, pegged to 21 times FY2027 estimated price earnings.
Sunway Construction shares closed up 18 sen or 2.28% at RM8.08 on Monday, giving it a market capitalisation of RM10.76 billion. The stock has gained 42% so far this year.