SUNWAY CONSTRUCTION’S PROFIT BEFORE TAX RISES 19% TORM50 MILLION IN Q2 FY2024, DECLARES HIGHER INTERIM DIVIDEND OF 3.5 SEN.

SUNWAY CONSTRUCTION’S PROFIT BEFORE TAX RISES 19% TORM50 MILLION IN Q2 FY2024, DECLARES HIGHER INTERIM DIVIDEND OF 3.5 SEN.

SUNWAY CONSTRUCTION’S PROFIT BEFORE TAX RISES 19% TO RM50 MILLION IN Q2 FY2024, DECLARES HIGHER INTERIM DIVIDEND OF 3.5 SEN.

o Revenue increased 7.8% to RM651.2 million in Q2 FY2024, led by better performance from the construction segment.
o The Group raised its order book replenishment target for 2024 to a range of RM4.0 billion to RM5.0 billion.
o The Group is optimistic in registering positive growth for the financial year ending 31 December 2024, bolstered by its robust existing outstanding order book of RM 7.4 billion as of 30 June 2024.

Sunway City Kuala Lumpur, 22 August 2024 – Sunway Construction Group Berhad (“Sunway Construction” or “Group”) is pleased to announce its financial results for the second quarter ending 31 December 2024 (“Q2 FY2024”).

Sunway Construction recorded strong financial performance in Q2 FY2024. Revenue increased 7.8% to RM651.2 million in Q2 FY2024, led by better performance from the construction segment. Profit before tax (“PBT”) rose 18.8% to RM50.2 million, compared to RM42.3 million in the same quarter in the preceding year. The increase in PBT was attributed to higher profits from all segments.

For the quarter ended 30 June 2024, the construction segment’s revenue expanded 11.6%, from RM535.6 million to RM597.6 million. PBT grew 19.9% to RM46.9 million in Q2 FY2024, while the PBT margin inched up from 7.3% to 7.8%. The better performance for the construction segment was attributed to accelerated progress for newer projects which contributed to the increase in PBT and improvement in PBT margin.

The precast segment recorded revenue of RM53.6 million in the current quarter, compared to RM68.5 million in the corresponding quarter in the preceding year. Higher revenue in the same quarter in the previous year was mainly due to higher contributions from projects nearing completion. PBT improved marginally from RM3.2 million to RM3.3 million in the current quarter, on the back of the reversal of
provision for completed projects.

The Group declared a first interim single-tier dividend of 3.50 sen per ordinary share for the financial year ending 31 December 2024. The current year’s first interim dividend is higher than the 3.0 sen declared and paid in the same period last year.

Sunway Construction Group Managing Director Mr. Liew Kok Wing commented, “The strong flow of new contracts in the first half of the year has been encouraging. The Group exceeded its initial order book replenishment target of RM2.5 billion to RM3.0 billion, after securing RM3.5 billion worth of new orders up to August 2024.

We are pleased to announce a higher order book replenishment target of RM4.0 billion to RM5.0 billion for 2024.”

He added, “The 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, logistic warehouse facilities, and semiconductor manufacturing facilities locally and in the ASEAN region.”

He further elaborated, “On the domestic front, the Group is looking forward to pursuing opportunities in public sector projects, such as the Penang Light Rail Transit project and Penang International Airport expansion project.”

He concluded, “The Group is optimistic of registering a positive growth in FY2024, bolstered by our strong existing outstanding order book of RM7.4 billion as of 30 June 2024.”

— end of press release —

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