This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Sunway Construction Group Bhd (KL:SUNCON) garnered yet another recognition at The Edge Billion Club (BRC) Awards this year. But what makes this year’s achievement special is that it took home the grand award — Company of the Year — recognising its strong performance not only financially, but also in corporate responsibility.

This latest win places SunCon in an elite group of companies recognised for their leadership in their respective industries. They include United Plantations Bhd (KL:UTDPLT), fellow construction industry stalwart Gamuda Bhd (KL:GAMUDA), Mega First Corp Bhd (KL:MEGAFB), Frontken Corp Bhd (KL:FRONTKN) and ViTrox Corp Bhd (KL:VITROX).

Other than being a leader in the construction sector, SunCon has been a regular feature on the BRC Awards stage. This year marks the eighth consecutive year that it has bagged the award for highest return on equity (ROE) over three years in the construction sector.

SunCon’s ROE expanded from 18.6% in the financial year ended Dec 31, 2023 (FY2023) to 22% in FY2024, before rising substantially to 43.5% in FY2025, giving the group an adjusted weighted ROE over three years of 32.1%.

This was underpinned by sterling profitability. Its net profit came in at RM145.1 million in FY2023, up 7.32% year on year (y-o-y) from RM135.2 million. With a growth rate of 28.81%, its net profit reached RM186.89 million in FY2024. It nearly doubled in FY2025 to RM361.8 million, bringing SunCon’s risk-weighted profit-after-tax compound annual growth rate (CAGR) over three years to 38.8%.

In line with the robust financial performance, SunCon’s adjusted share price has risen over the years, from RM1.47 on March 31, 2023, to RM2.67 a year later. By March 28, 2025, the stock had hit RM4.10, a 53.56% increase, before closing 55.37% higher at RM6.37 on March 31, 2026, the cut-off date for BRC membership.

With the strong share price appreciation, SunCon’s shareholder returns CAGR over three years came in at a commendable 62.9%.

The group’s performance has continued to be promising this year. In 1HFY2026, it chalked up a net profit of RM222 million, up 39.09% y-o-y, even though revenue dipped 29.17% to RM2.04 billion.

Commenting on its prospects after the latest results release, SunCon said it had secured RM6.85 billion in new orders year to date, surpassing its initial RM6 billion order-book replenishment target for 2026. The group has consequently revised upwards its full-year target to between RM7 billion and RM9 billion.

Its outstanding order book stands at an all-time high of RM10.5 billion, providing strong earnings visibility and supporting the group’s growth momentum.

It is noteworthy that data centre (DC)-related projects account for around 70% of SunCon’s total order book and more than 90% of new construction contract wins in FY2026.

The group has an active tender book of RM14.2 billion, comprising opportunities from DC projects as well as internal job flows from its parent, Sunway Bhd (KL:SUNWAY), a major property developer.

According to analysts, there is more upside for SunCon’s stock. BIMB Securities, among the more bullish brokerages, has a target price of RM9.62, indicating a 17.5% upside from the stock’s closing price of RM8.19 on Aug 28.

In a report released earlier last month, BIMB Securities said: “DC remains the sector’s clearest structural growth catalyst, although exposure has broadened beyond SunCon. SunCon remains the most concentrated DC proxy, with a record RM10.5 billion order book, of which 70%, or RM7.4 billion, comprises DC-related jobs, alongside an active DC tender pipeline exceeding 700mw.”

According to Bloomberg, 13 of the 18 analysts covering SunCon have a “buy” call on the stock, and the remaining five recommend a “hold”. The stock is trading around 24.7 times price-earnings multiples.

Market interest in SunCon is supported by more than its order book.

The group’s balance sheet remains solid. As at end-June this year, it had zero gearing, given cash and bank balances of RM1.64 billion, against short-term borrowings of RM306.11 million and long-term debt commitments of RM124.11 million.

Since its establishment in 1981, SunCon has completed more than RM45 billion worth of projects spanning seven markets, including Taiwan, Myanmar, India, Trinidad and Tobago, the United Arab Emirates and Singapore.

In its latest annual report, SunCon said its plans for its mechanical, electrical and plumbing and advanced technology facilities businesses include “selective expansion opportunities with its existing multinational clients across selected Asean markets, including India and Vietnam”. It also plans to strengthen its technical capabilities over time to support other high-technology industrial facilities, including semiconductor-related projects, alongside DCs.

SunCon’s suite of capabilities in design and construction includes building construction, civil engineering and infrastructure works, mechanical, electrical and plumbing works, advanced technology facilities, manufacturing and sale of precast concrete products, foundation and geotechnical engineering.

In a nutshell, the group’s vertically integrated business model offers end-to-end solutions for the construction industry, reducing its reliance on external vendors while keeping its costs low.

Sunway controls 53.12% of SunCon, and Sunway founder Tan Sri Jeffrey Cheah Fook Ling and his family collectively hold a 62% stake in SunCon.

Cheah, who is also Sunway Group chairman, was conferred with the Value Creator: Malaysia’s Outstanding CEO award at the BRC in 2014.

Like other shareholders, Cheah has benefited from SunCon’s performance, which has yielded solid dividend payments. Its 12-month trailing dividend yield of 8.7% is one of the highest among its construction sector peers.

SunCon paid dividends of 50.5 sen per share in FY2025, amounting to a total payout of RM664.83 million, or 184% of profit after tax and minority interests. Of this, 23 sen was a special dividend. This was substantially higher than the 8.5 sen dividend payout in FY2024 and six sen in FY2023.

For FY2026, the group has so far declared dividends totalling 26.8 sen per share, including a special dividend of 15.2 sen, amounting to a total payout of RM354.95 million.

Given its consistent performance, it is perhaps unsurprising that SunCon has accumulated a dozen BRC awards since its relisting in 2015. SunCon was taken private by Sunway in 2004.

Yet, the group has not lost sight of its corporate responsibility commitments. Through its SunCon Social Club, it runs several community programmes aimed at supporting and engaging local communities.

These initiatives helped SunCon secure its first BRC recognition for Best CR Initiative, where it was named a joint winner in the category for companies with a market capitalisation below RM10 billion.

SunCon’s latest achievements underline how strong financial performance can go hand in hand with broader corporate responsibility, providing a notable example of how a Malaysian firm can pursue growth while remaining engaged with the communities in which it operates.

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