KUALA LUMPUR (Aug 22): Sunway Construction Group Bhd (KL:SUNCON) saw its net profit rise 17.8% to RM38.87 million for the second quarter ended June 30, 2024 (2QFY2024), from RM33 million a year ago, on improved contributions from all segments.

This resulted in higher earnings per share of 3.01 sen for 2QFY2024, compared with 2.56 sen for 2QFY2023.

Overall revenue for the quarter also increased 7.8% to RM651.25 million from RM604.1 million a year earlier, on better performance of the construction segment, which saw revenue grow 11.6% year-on-year to RM597.6 million.

The group declared a first interim dividend of 3.5 sen per share for FY2024, payable on Sept 26. This is higher than the three sen declared and paid a year ago.

The strong quarterly performance lifted the group's net profit for the first half ended June 30, 2024 (1HFY2024) to RM71.27 million, up 17.2% from RM60.83 million a year ago, while revenue rose 11.5% to RM1.26 billion from RM1.13 billion for 1HFY2023.

Order book replenishment target raised to RM4b-RM5b this year

In a statement on Thursday, SunCon said it is optimistic about registering positive growth in FY2024, bolstered by its robust outstanding order book of RM7.4 billion, with RM3.467 billion in new orders secured up to August.

SunCon group managing director Liew Kok Wing said the group had exceeded its initial order book replenishment target of RM2.5 billion to RM3 billion. It has thus raised its target replenishment for 2024 to between RM4 billion and RM5 billion.

“Prospects for the domestic construction sector remain promising. In the advanced technology facilities segment, SunCon is building five data centres projects for four multinational clients while actively pursuing more data centre opportunities, logistics warehouse facilities, and semiconductor manufacturing facilities locally and in the Asean region," he added.

Liew also said the group anticipates a promising outlook for the construction sector, supported by upcoming public sector projects, including the Penang Light Rail Transit project and the Penang International Airport expansion project.

In a separate filing with Bursa Malaysia, SunCon said apart from opportunities in both the private and public sectors, it continues to pursue in-house pipeline projects from its immediate holding company, Sunway Bhd, particularly those involving special purpose buildings.

"Barring any further unforeseen circumstances, including the possibility of any further adverse fluctuations in building material prices, the group is optimistic about registering positive growth in FY2024 based on our existing order book," it said.

SunCon shares closed up 12 sen or 2.91% at RM4.24 on Thursday, giving the company a market capitalisation of RM5.48 billion. The stock has surged 113.07% so far this year.