SunCon Secures RM1.15 Billion Data Centre Contracts From US Multinational
The Group expects these projects to contribute positively to the Group's earnings for the current and subsequent financial years, with completion targeted for the first quarter of 2027.
Sunway Construction has secured RM3.5 billion worth of new orders to date, accounting for more than half of its 2025 order book replenishment target range of RM4.5 billion to RM6.0 billion. As a result, its total outstanding order book has risen to RM7.9 billion.
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Malaysian Reserve
15 hours ago
- Malaysian Reserve
CGS International Accelerates Sustainability Efforts and Unveils Second Sustainability Report
The Group received 17 Sustainability-related awards in 2024, spanning CSR, DEI and ESG categories. Notable progress was made on its eight Sustainability Focus ('8SF') areas, including the launch of its ESG Incorporation Framework ('ESGIF') to guide the development of ESG-labelled products and services. Starting 2025, the Group will focus on further ESG incorporation into its products and services, tracking Scope 3 emissions, and integrating climate risk into its risk management framework. SINGAPORE, July 23, 2025 /PRNewswire/ — CGS International Securities Pte Ltd ('CGS International') has published the second edition of its sustainability report, reaffirming its commitment to sustainable practices in its business and operations. The 2024 Sustainability Report is aligned with globally recognised sustainability reporting standards, Global Reporting Initiative ('GRI'), as well as the International Financial Reporting Standards S2 on climate-related disclosures. 'CGS International remains committed to future-proofing our business by embedding sustainability in our strategy. We are focused on creating long-term value for our stakeholders and giving back to the communities we serve. At the same time, we continue to facilitate capital flows between China and ASEAN, some of which could be channeled to sustainable development areas that address climate and biodiversity risks in the ASEAN region,' said Ms Carol Fong, Group CEO of CGS International. Promoting Bilateral Relations and Mutual Growth In an increasingly fragmented and volatile global economy, it is important for Asian countries to forge closer regional cooperation to increase collective influence and trade resilience. The Group strengthened its role as a China-ASEAN nexus, facilitating not only capital flows, but also bilateral relations. In 2024, several high-impact conferences were organised across Southeast Asia and China, including the CGS SEA Bilateral Investment Forum 2024 in Hainan, which brought over 300 business leaders from China and ASEAN together. The Group also fostered closer relations between China and Malaysia, including a letter of intent between the governments of Hangzhou and Kuala Lumpur, and hosting high-level delegates to deepen bilateral cooperation. A notable initiative within the Group was the launch of a secondment programme between CGS International and its parent company, China Galaxy Securities, with the aim to facilitate cross-cultural exchanges and strengthen intra-group ties. Deepening ESG Integration Across the Group The 2024 report highlights meaningful progress across the Group's 8SF areas and marks a milestone in its Vision 2025 Strategy and Business Plan, the five-year roadmap that places sustainability at the heart of its strategic direction: Made material progress in emissions tracking, where Scope 2 emissions tracking was extended to international offices. Developing reduction targets and plans for Scope 1 and 2 for Malaysia, Indonesia, Singapore and Thailand offices in 2025 and 2026. Laid the groundwork with the continued measurement of Scope 3 emissions Category 1 (Purchased Goods and Services) from previous years Embarking on other Scope 3 categories covering business travel and finance-related activities in future years. In 2024, CGS International advanced its 'Sustainable Finance' focus by introducing the ESGIF, developed and endorsed by the Group's Sustainability Committee. This framework aims to provide direction and harmonisation for the development of ESG products and services. It establishes clear mechanisms for measurement, tracking, and reporting to support strategic decision-making. Furthermore, CGS International's Malaysia office launched ESG Margin Financing to promote investment in companies with strong ESG performance. Customers investing in constituents of the FTSE4Good Bursa Malaysia Index with high ESG ratings received preferential financing rates, with total loans extended reaching RM4.88 million. The Group's presence in Shariah-compliant markets across ASEAN also drove over S$6 million in revenue from faith-based products. Fostering Collaborative Impact 'At CGS International, we believe that knowledge sharing and collaboration are essential to driving meaningful progress on critical sustainability issues. By working closely with our partners and stakeholders, we aim to create a stronger collective catalyst for sustainable finance across Southeast Asia, and mobilise the industry towards greater climate action across ASEAN,' said Mr Kevin Lee, Group Head of Sustainability. One such initiative is the ASEAN Institute of Carbon Neutrality ('AICN'), launched in late 2023. AICN aspires to mobilise capital towards sustainable development in the ASEAN region to address issues such as climate change. This is done through education and engagement with the business community on sustainability issues through knowledge sharing and thought leadership. The AICN has collaborated with the Sustainable and Green Finance Institute ('SGFIN') from the National University of Singapore since 2024, which resulted in two white papers published on the topics, Just Energy Transition Partnership in Indonesia and Renewable Energy Imports for Singapore. AICN also hosted two webinars on related topics in 2024, including one on nature-related risks for corporates. In the pipeline are three joint research reports with SGFIN in 2025. For more details about CGS International's sustainability initiatives: – END – About CGS International Securities CGS International Securities Pte. Ltd. ('CGS International') is an award-winning and market leading integrated financial services provider, ranked among the top securities houses in Asia. CGS International taps on our wealth of global and ASEAN insights to offer equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products and prime brokerage services in over 15 countries and regions. Along with its parent organisation China Galaxy Securities, a leading securities house in China, CGS International is trusted by close to 18 million customers globally. Find out more at
The Sun
20 hours ago
- The Sun
DFI Retail Group Holdings Limited Half-Year Results For The Six Months Ended 30 June 2025 And Announcement Of Special Dividend
Highlights -39% underlying earnings growth -Increased contributions from associates, Health & Beauty and Food -Health & Beauty delivered strong like-for-like (LFL) sales growth of 4% -Portfolio simplification continues with the announced divestment of Singapore Food business and sale of minority stake in Robinsons Retail -Proceeds from Yonghui and Robinsons Retail divestments strengthen balance sheet to a net cash position of US$442 million -Raised full-year underlying profit guidance to be between US$250 million and US$270 million -Declared special dividend of US¢44.30 per share in addition to interim dividend of US¢3.50 HONG KONG SAR - Media OutReach Newswire - 22 July 2025 - 'We are pleased to report strong first-half underlying profit growth to US$105 million, supported by improved Health & Beauty and Food profitability, higher contribution from associates, and a stabilising revenue growth trend. Our ongoing portfolio evolution enables us to prioritise capital on high-margin businesses and growth initiatives, while providing strategic flexibility for inorganic opportunities. As a result of our strategic progress, we are pleased to announce a special dividend of US¢44.30 per share – the first in 18 years – returning a total of US$647 million to shareholders, including the regular interim dividend. These decisions underscore our confidence in DFI's long-term growth strategy and commitment to shareholder returns.' Scott Price Group Chief Executive OVERVIEW The Group continued to demonstrate strong business resilience by effectively executing its strategic and margin expansion initiatives. Despite the continued shift towards value by consumers, LFL subsidiary sales for the first half of 2025 remained largely stable compared to the same period last year, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of Hero Supermarket business in Indonesia in 2024. LFL subsidiary sales have demonstrated a steady recovery with a return to moderate growth in the second quarter of 2025. Significant progress has been made in the Group's strategic pivot from a portfolio investor to an operating company centred on five key deliverables: Retail excellence: Delivering a best-in-class customer proposition Customer access: Strategically expanding store network Omnichannel and data ecosystem: Powering e-commerce and retail media with data-driven insights Lean and agile operations: Streamlining business for more efficient decision making Evolving portfolio: Prioritising capital returns and shareholder value The Group continues to reinvest in pricing to deliver a stronger customer value proposition while resetting our sourcing strategy to expand gross profit. Reduction in financing costs and higher underlying profit from associates contributed to a 39% increase in underlying profit attributable to shareholders for the first half of 2025. The Group continues to evolve its portfolio to enhance operational focus and enable more efficient capital allocation, supporting subsidiary business growth both organically and inorganically should shareholder accretive opportunities arise. During the reporting period, the Group completed the divestment of minority stakes in both Yonghui and Robinsons Retail, generating total gross proceeds of approximately US$900 million. Additionally, the Group announced the divestment of its Singapore Food business for approximately US$93 million in cash consideration. As a result of this strategic progress, the Board has approved a special dividend of US¢44.30 per share, equivalent to US$600 million in total payment. Concurrently, the Group declared an interim dividend of US¢3.50 per share, in line with the prior comparable period. These decisions underscore the Group's confidence in its long-term growth strategy and its commitment to creating value for its shareholders. OPERATING PERFORMANCE Overall Total revenue from subsidiaries for the first half of 2025 was US$4.4 billion, up 0.3% year-on-year on a LFL basis, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of the Hero Supermarket business in Indonesia in 2024. Strong sales growth in the Health & Beauty division was offset by lower contributions from other segments. Total revenue, which includes 100% of associates and joint ventures, was US$8.2 billion. Excluding the impact of the minority stake divestment in Yonghui completed at the end of February 2025, as well as the additional two months of sales contribution from Robinsons Retail following the stake disposal at the end of May 2025, total revenue increased by approximately 1%. Total underlying profit attributable to shareholders for the first half of 2025 reached US$105 million, representing a year-on-year increase of 39%, primarily driven by improved performance in associates. Underlying profit from subsidiaries was US$75 million, reflecting a 3% year-on-year increase. Strong performance in the Health & Beauty and Food divisions was partially offset by lower profitability in Convenience as a result of the cigarette tax impact, and higher selling, general and administrative expenses[1] primarily due to a one-time reversal of long-term incentive accruals in 2024 related to executive departures. After accounting for the divestment of Yonghui, underlying profit from associates was US$30 million, an improvement from US$3 million from the prior comparable period, supported by higher contributions from both Maxim's and Robinsons Retail. Free cash flow for the period was a net inflow of US$89 million, compared with US$61 million in the first half of 2024. As at 30 June 2025, the Group's net cash was US$442 million, compared to US$468 million net debt at 31 December 2024. Subsidiaries Sales for the Health & Beauty division were US$1.3 billion, up 4% year-on-year on a LFL basis, underscoring the strengthening brand equity of Mannings and Guardian as trusted advisors in health and wellness. Mannings Hong Kong delivered strong LFL sales growth of 6%, driven by growing basket size as the team continued to enhance assortment in key wellness categories, including supplements and derma skin care. Solid LFL sales performance of Guardian was supported by basket size increases across key Southeast Asian markets and improved promotional efficiency, particularly in Indonesia. Integrating the Own Brand team across Food and Health & Beauty drove stronger product relevance and cost efficiency, resulting in improved sales and profit productivity per SKU. Overall, divisional profit grew 8% to US$109 million on a LFL basis1. Total Convenience sales were US$1.1 billion, down 4% year-on-year on a LFL basis, primarily due to reduced volumes of lower-margin cigarette following tax increases in Hong Kong at the end of February 2024. Excluding cigarettes, overall LFL sales were down 1%. Hong Kong performance recovered in the second quarter, following the annualisation of the tax effect and continued growth in higher-margin ready-to-eat (RTE) categories. Excluding cigarettes, LFL sales for the first half were in line with the prior comparable period. 7-Eleven Singapore reported LFL sales below the same period last year. South China reported robust sales growth due to network expansion but lower LFL sales given intensified subsidy initiatives from food delivery platforms. The team remains focused on driving footfall and sales by expanding the RTE offering, including a larger rollout of the Food Bar format to 375 stores by the end of this year. Despite a favourable sales mix shift towards higher-margin RTE products, profit for the division dropped by 18% year-on-year to US$38 million due to tough comparables in the first half of 2024 as a result of a one-off windfall gain from cigarette inventory purchased before tax increase. Excluding which, profit for the division was up 9% year-on-year. Revenue for the Food division reduced marginally to US$1.5 billion, after excluding the impact of the divestment of the Hero Supermarket business last year. Sales resumed growth in the second quarter, supported by the Group's focus on enhancing the value of consumers' food baskets. In Hong Kong, investment in reduced pricing has resulted in a 2.5% increase in footfall in May and 3.4% in June, in addition to a consistent rise in items per basket. To further enhance its fresh and value proposition, the Wellcome team launched a partnership with Dingdong Limited (DDL), a leading Chinese online grocery platform, during the second quarter of 2025. The collaboration offers consumers a wider selection of fresh produce at more competitive prices. The team's effort to strategically source the core basket will support both price reinvestment and continued net margin expansion in the coming years. Overall Food profit grew 14% year-on-year to US$24 million on a LFL basis1. Sales performance of the Home Furnishings division remained challenged due to intense competition and shifts in basket mix, mainly in Hong Kong and Indonesia while Taiwan demonstrated relative resilience. Effective cost control measures across markets supported a recovery in underlying profit for the first half of the year. The IKEA Hong Kong business is strengthening its value-driven omnichannel proposition by reinvesting in core product pricing, evolving seasonal food range and leveraging yuu data for more precise customer targeting. In Indonesia, the IKEA team remains focused on driving sales through an expanded digital presence and intensified marketing efforts. Digital During the first half of 2025, the Group continued to strengthen its digital presence with the launch of new online channels, including a 7-Eleven app in Singapore. Our expanded digital assets, quick commerce service with third-party platforms and data-driven personalised offerings create a seamless omnichannel shopping experience across physical and digital touchpoints, contributing to a growing e-commerce penetration of approximately 5%. Daily e-commerce order volume surpassed 96,000, reflecting an 85% year-on-year increase and a substantial improvement in profit contribution. DFIQ, the Group's retail media business, continues to gain strong momentum, completing over 160 targeted marketing campaigns in the first half of 2025, compared to 12 in the prior comparable period. The DFIQ team has successfully piloted in-store media in select Mannings stores in Hong Kong, as well as Guardian and 7-Eleven outlets in Singapore. This uniquely integrated online-to-offline retail media solution provides suppliers with an expanded reach, driving enhanced customer loyalty and conversion throughout the entire purchase journey. Associates The Group's share of Maxim's underlying profits was US$14 million for the first half of 2025, up from US$8 million in the same period last year, underpinned by continued cost optimisation and operational efficiency measures. Sales performance was largely stable year-on-year, with strong growth in Southeast Asia offset by weaker restaurant performance in Hong Kong and the Chinese mainland. Underlying profit contribution from Robinsons Retail was US$18 million, an improvement of approximately US$9 million from the first half of 2024. This includes the impact of two additional months of contribution, amounting to approximately US$5 million, following the completion of the divestment at the end of May 2025. The divestment of the Group's stake in Yonghui was completed in February 2025. On 24 March 2025, the Group announced that it had entered into a definitive agreement with Macrovalue, a leading Southeast Asian retail group, with respect to the divestment of its Singapore Food business, which includes the Cold Storage, CS Fresh, Jason's Deli and Giant brands, for a total cash consideration of SGD125 million or approximately US$93 million, subject to adjustments. The transaction is subject to closing conditions and is expected to be completed by the end of 2025. On 30 May 2025, the Group announced and completed the divestment of its 22.2% stake, in Robinsons Retail Holdings, Inc., for a total cash consideration of PHP15.8 billion or approximately US$283 million. Following the completion of the transaction, the Group ceases to hold any interest in Robinsons Retail. The above transactions reflect the Group's strategic pivot from a portfolio investor to a focused operating company, enabling the Group to redeploy capital to support the growth of its subsidiary businesses with higher accretive returns. OUTLOOK The Group remains confident in its ability to navigate the evolving market landscape, supported by strategic initiatives aimed at driving market share gain and profit growth across all businesses. These initiatives include strengthening the value proposition, optimising assortment through data-driven insights, expanding omnichannel presence and accelerating monetisation of digital assets. With a more focused business portfolio and enhanced operational efficiency, the Group is committed to delivering sustained, profitable growth by balancing ongoing investments in businesses and areas with long-term strategic value, while also increasing returns for shareholders. The Group restates its full-year organic revenue growth outlook to a range of 0.5% to 1.0% (from approximately 2%), reflecting broader economic uncertainty and a sharper-than-expected decline in cigarette sales. Despite a more cautious revenue outlook, the Group expects to deliver stronger profitability through enhanced operational efficiency and disciplined cost management. The Group, therefore, revises its full-year guidance of underlying profit attributable to shareholders to be between US$250 million and US$270 million (up from previously between US$230 million and US$270 million). Scott Price Group Chief Executive
Free Malaysia Today
a day ago
- Free Malaysia Today
Sentiment sours for Sunway Construction after MACC probe
Sunway Construction's order book stands at RM7.9 billion as at June 2025, with data centres making up 49%. (Sunway pic) PETALING JAYA : Research houses said Sunway Construction Group Bhd's (SunCon) potential of winning multi-billion-ringgit data centre jobs may be affected by an anti-graft investigation into an employee's dealings with subcontractors. Its shares tumbled as much 17.6% yesterday after it announced in a bourse filing the Malaysian Anti-Corruption Commission (MACC) had initiated an investigation on the employee. The stock continued falling today and was down 3.5% or 19 sen to RM5.30 at 4.15pm, valuing the company at RM6.96 billion. Despite the fall, the shares have surged 40% over the past six months on the back of its ability to compete successfully for data centre construction jobs. However, the falling share price is the least of its worries compared to the potential damage the episode may inflict on the Sunway Group's squeaky-clean image. The construction company is a subsidiary of Sunway Bhd, which has a 54.55% stake through Sunway Holdings Sdn Bhd. In a note today, TA Research said it was 'surprised by the development, particularly given SunCon's strong reputation for corporate governance' and its established suite of compliance policies. The research house said the reputational damage inflicted on the group is not quantifiable at this juncture, and the negative news flow may weigh on its near-term ability to secure new contracts. This uncertainty is likely to persist until the investigation is concluded, it added. 'Furthermore, we do not rule out the possibility that new clients may impose more stringent due diligence or require additional assurance on project execution standards – potentially leading to delays in new project awards. 'Against this backdrop, we remain cautious on the group's near-term job replenishment prospects,' said TA, which maintained its 'sell' call and cut its target price (TP) to RM5.59 from RM5.76 previously. Nevertheless, TA said it was reassured the case appears to involve misconduct in a personal capacity, rather than 'systemic failure'. 'We believe it is unlikely to compromise SunCon's relationships with existing clients,' it added. Advantage to rivals Meanwhile, CGS International noted that while SunCon maintains this is an isolated incident with no senior management involvement, reputational risks could temporarily provide advantage to rivals like Gamuda Bhd and IJM Corp Bhd. 'This may impact some of SunCon's ongoing tenders, especially in the data centre space, of which we understand there are seven to eight totalling RM14 billion,' it said. However, given its strong brand equity and parentage, CGS thinks SunCon will be able to recover from this without impacting its new order wins materially over the longer term. It noted that SunCon's year-to-date FY2025 wins amount to RM3.5 billion and its order book stood at RM7.9 billion as at June, with data centres making up 49%. The revelation of the anti-graft watchdog's probe on the SunCon employee comes on the heels of MACC's investigation dubbed Op Ways since last Thursday, over alleged corruption involving a data centre construction project tender in Johor worth some RM180 million. The operation resulted in the arrest of a manager of a construction company, alongside his wife and two men in the Klang Valley.
