Sunway Construction

[winston]

not vested

1Q25: Full Throttle On DC Frontier

Suncon delivered impressive 1Q25 earnings within expectations, reflecting the construction segment’s improved progress billing, particularly from the higher-margin data centre projects.

The group also announced another RM393m data centre project from K2 yesterday.

With robust orderbook replenishment and rosy prospects for 202526, we remain optimistic that Suncon can still deliver palatable capital returns for investors.

Maintain BUY with a higher target price of RM5.46.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Bumper quarter; wins K2 Phase 2 DC job

1Q25 was a bumper quarter beating Bloomberg consensus on the back of acceleration in DC recognition with improvement in construction margins.

RM393m K2 DC phase 2 job win brought orderbook to RM6.6bn; sizeable upsizing of its ECI for a US MNC is next, in our view.

Reiterate Add and TP of RM5.70 based on GGM.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 60CE80F5D8

[winston]

not vested

Solid beat all round

U/G to BUY with higher TP of MYR5.24 (+26%)

Earnings, dividends and job wins all beat our expectations.

Reflecting higher annual jobs wins of MYR5.5b (MYR4.5b previously) and DPR of 70% (50% previously), we raise our EPS estimates by 6-23% and lift DPS estimates by 48-68%.

Accounting for higher earnings growth and dividend yields, we peg a higher FY25E PER of 24x or +1 SD to 12M forward PER mean (from 21x or +0.5 SD to 12M forward PER mean).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/459073.pdf