Sunway Construction Shares Rise 15 Sen At Mid-morning After Securing RTS TOD Contract

KUALA LUMPUR, March 6 (Bernama) -- Sunway Construction Group Bhd’s (SunCon) shares rose at the mid-morning trading session after the company secured a RM1.5 billion contract for construction works related to the Rapid Transit System Transport Orientated Development (RTS TOD) project in Bukit Chagar, Johor.

As of 11.51 am, SunCon’s stock price increased by 15 sen or 3.54 per cent to RM4.39 with 3.73 million shares traded. 

In a filing with Bursa Malaysia yesterday, the group announced that it had received the contract from Sunway Integrated Properties Sdn Bhd. 

The contract is divided into two parts. Part A covers the construction and completion of a multi-storey park-and-ride building for the RTS TOD project, a drop-off and pick-up facility, an immigration customs and quarantine complex connection, the perimeter ring road, and retaining walls.

Part B involves the construction and completion of a retail mall, podium, and top-side property at the Bukit Chagar station. 

Following this latest contract win, SunCon’s total outstanding order book stands at RM7.6 billion. The company has secured RM1.7 billion worth of new projects in 2025, including those related to the RTS TOD project.

In a research note today, RHB Investment Bank Bhd (RHB IB) said the contract award was expected, given that SunCon had previously completed approximately RM1.2 billion worth of projects in Sunway City Iskandar Puteri.

“There are no changes to our earnings estimates as the latest job win is within our financial year of 2025 (FY2025) job replenishment assumption of RM5 billion,” it said.

RHB IB maintained its target price (TP) of RM5.63 per share is unchanged, citing SunCon’s position as the publicly listed contractor with the highest proportion—about 50 per cent—of its order book derived from data centres.

“This, along with its above-industry return on equity and steady job prospects from its parent company, which has a strong presence in Ipoh and Johor, justifies our TP,” it added.

Meanwhile, Kenanga Investment Bank Bhd viewed the contract win positively, noting that its value exceeded the previous assumption of RM1.04 billion.

“In line with the company’s guidance of RM6.0 billion new job wins for FY2025, we have raised our FY2025 job replenishment target to RM6 billion and thus upgraded FY2025-2026 earnings forecast by 8 to 9 per cent. We maintain our 'outperform' call with a higher TP of RM5.31 per share,” it added.

-- BERNAMA