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Tuesday, 27 February 2018

(The Star) SunCon revenue hits RM2bil

PETALING JAYA: Sunway Construction Group Bhd (SunCon) says 12-month revenue topped RM2bil for the first time in the financial year ended Dec 31, 2017 (FY17), boosted by ongoing works at the Klang Valley Mass Rapid Transit (KVMRT) project.

Earnings climbed 11.6% to RM137.8mil, or 10.6 sen a share.

The group has declared a second interim dividend of four sen a share, bringing total payout to seven sen a share, it said in a filing with Bursa Malaysia.

The payout works out to about two-thirds of its full-year net profit.

The group said its construction order book had swollen to RM6.1bil as at end-2017, boosting its earnings visibility in the current FY18.

Group managing director Chung Soo Kiong said that SunCon has submitted a tender for the Kuala Lumpur-Singapore high-speed rail project delivery partner under a four-party consortium, of which Sunway Construction Sdn Bhd is a partner with IJM Construction Sdn Bhd, Jalinan Rejang Sdn Bhd and Maltimur Resources Sdn Bhd.

The tender closed on Feb 14.

“Going forward in 2018, we expect the construction sector to sustain its growth momentum on the back of several key infrastructure projects that were announced during Budget 2018,” Chung said.

During the period under review, SunCon’s construction segment reported a revenue of RM1.93bil compared to a revenue of RM1.5bil a year earlier.

The 28.6% jump in revenue in its construction segment was mainly due to a higher contribution from the KVMRT line from Sungai Buloh to Persiaran Dagang and the building known as Parcel F in Putrajaya, as well as the finalisation of the earlier KVMRT V4 package from Seksyen 16 to Semantan Portal.

For the fourth quarter of FY17, SunCon’s net profit fell marginally to RM31.80mil from RM32.06mil a year earlier.

Revenue for the quarter saw a 35.3% jump to RM748.17mil from RM553.15mil previously.

“For 2018, we have secured new orders of RM456mil, which mainly comprise the extension of Sunway Carnival Mall in Penang and the 44-storey Sunway GEO Lake residential tower in Sunway City,” the group said in a statement.