Sunway Construction posts threefold jump in 2Q net profit, declares three sen dividend

KUALA LUMPUR (Aug 24): Sunway Construction Group Bhd's (SunCon) net profit for the second quarter ended June 30, 2022 (2QFY22) jumped threefold to RM32.3 million from RM8.32 million a year earlier, due to a low base and higher revenue from all segments.

In a filing with Bursa Malaysia on Tuesday (Aug 23), the company said its revenue for the quarter rose 48.7% to RM557.9 million from RM375.3 million previously.

Earnings per share stood at 2.51 sen, up from 0.65 sen.

The company declared a dividend of three sen per share.

For the six months ended June 30, 2022, net profit jumped to RM66.82 million from RM28.57 million, on the back of a revenue of RM1.18 billion versus RM830.47 million previously.

In a separate statement, SunCon group managing director Liew Kok Wing said barring any unforeseen circumstances, the group is cautiously optimistic about registering positive growth in FY22, supported by a strong existing outstanding order book.

Liew said the outlook for the construction industry is improving, as the economy transitions into the endemic phase of Covid-19.

He said the roll-out of mega infrastructure projects augurs well for the construction industry, adding that rapid growth in the e-commerce, cloud computing and microchips industries leads to higher demand for semiconductor manufacturing plants and facilities, e-commerce and logistics warehouses and data centres.

“We hope that the operating landscape will stabilise further, as commodity and steel bar prices have retreated from their peak levels.

“Meanwhile, SunCon managed to obtain a quota for 400 foreign workers, and we expect approximately 100 foreign workers to arrive in September,” he said.

At 12.06pm on Wednesday, SunCon had added one sen to RM1.56, with 30,000 shares traded.