KUALA LUMPUR (Nov 21): Sunway Construction Group Bhd’s net profit rose 54.14% to RM35.01 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM22.72 million a year earlier, in tandem with an increase in revenue, supported by higher topline contributions from all segments.

Quarterly revenue climbed 43.53% to RM673.51 million from RM469.25 million, the construction outfit's filing with Bursa Malaysia showed. Earnings per share increased to 2.72 sen from 1.76 sen.

The group's construction business saw revenue rise 40.9% to RM590.5 million in 3QFY2023 from a year ago, fuelled by enhanced contributions from sustainable energy projects and higher revenue recognition as newer projects progress. Consequently, profit before tax (PBT) rose 18.9% to RM41.6 million.

Its precast segment, which recorded a surge in revenue of 65% to RM83 million — underpinned by higher contributions from the integrated construction and prefabrication hub and several newer projects, recorded a more than doubling in PBT to RM6.5 million from RM2.6 million, on the back of the higher revenue and the reversal of provision for completed projects.

For the first nine months of FY2023 (9MFY2023), Sunway Construction’s net profit grew 7.05% to RM95.84 million from RM89.54 million in 9MFY2022, as revenue gained 8.96% to RM1.80 billion from RM1.65 billion a year earlier.

In a separate statement, Sunway Construction said it had secured RM2.23 billion of new orders in 9MFY2023, which exceeded its FY2023 new order book target of RM2 billion.

“Sunway Construction continues to make strides towards securing data center and logistics warehouse projects, securing its second data center and Daiso global distribution center warehouse projects in 3Q2023 totalling RM488 million,” Sunway Construction group managing director Liew Kok Wing said.

Liew also applauded the government for its commitment to ensure the continuity of ongoing projects and previously announced initiatives in the recently announced Budget 2024. "The infrastructure projects will serve as catalysts for the construction industry,” he said.

Moving forward, the group is cautiously optimistic in registering positive growth for FY2023 supported by its existing outstanding order book of RM5.8 billion, he added.

Sunway Construction shares closed three sen or 1.56% lower at RM1.89 on Tuesday (Nov 21), giving the group a market capitalisation of RM2.44 billion.