Full-year revenue jumped 51.7% to RM5.34 billion from RM3.52 billion with robust contributions across all segments, led by accelerated progress in advanced technology facilities-related projects.
For Q4 FY2025, net profit surged 71.2% to RM118.39 million from RM69.17 million a year earlier while quarterly revenue fell 27.4% to RM1.02 billion from RM1.4 billion.
The group declared a fourth interim dividend of nine sen per share, lifting its total dividend for the year to a record high 50.5 sen per share.
Its shares rose as much as 31 sen or 4.9% to RM6.62 in late afternoon trading. It pared its gains to close 28 sen or 4.4% higher at RM6.59, valuing the construction group at RM8.72 billion. A total of 8.8 million shares were traded.
The stock has risen 16% year to date and 54% over the past one year, riding on a spate of data centre projects catering to demand for advanced computing and artificial intelligence (AI) applications.
Managing director Liew Kok Wing said the group achieved an all-time high order book replenishment of RM5.2 billion in FY2025. SunCon has set a higher target of RM6 billion for 2026, supported by a strong tender pipeline and ongoing client engagements, he said in a statement yesterday.
He added that the accelerating global adoption of AI is fuelling a new wave of data centre investments across Asia, with major hyperscale technology companies announcing substantial cloud and data centre expansions in Malaysia.
SunCon’s net earnings for FY2025 was more than 20% above the consensus estimates, prompting analysts to raise their earnings forecasts and target prices (TP).
A total of 12 out of 15 research houses have “buy” calls on the stock with the rest on “hold” calls, according to Bloomberg data.
RHB Research described SunCon’s latest results as “another jaw-dropping quarter”, maintaining its “buy” call and raising its TP to RM7.96 from RM7.35.
It said the company’s FY2025 core net profit of RM425 million (+148% year-on-year) exceeded estimates, making up 123% and 124% of its and Street projections.
This was mainly due to the faster-than-expected progress on its existing data centre projects, it added.
RHB said aside from new data centre wins, a key rerating catalyst would be if SunCon secures any packages from the Penang Light Rail Transit project. On the flipside, it said the key downside risk is lower-than-expected job wins.
The group is currently bidding for contracts worth RM17.5 billion, including eight jobs related to data centres exceeding 700 megawatts, said Kenanga Investment Bank.