Latest news with #OpWays
BusinessToday
7 days ago
- Business
- BusinessToday
SunCon Share Sell-Off, Investors Overreacting
RHB Investment Bank Bhd (RHB Research) and MBSB Investment Bank Bhd (MBSB Research) have both reiterated their BUY calls on Sunway Construction Group Bhd (SunCon), citing strong fundamentals and long-term growth prospects despite a recent corruption probe involving a single employee. RHB Research has trimmed its target price to RM6.55 from RM6.80, implying a 19% upside, while MBSB Research maintains its TP at RM6.44, valuing the stock at 29 times FY26 forecast earnings per share. The Malaysian Anti-Corruption Commission (MACC) recently arrested a SunCon contracts manager under an anti-graft operation known as Op Ways. The employee, suspended pending termination, allegedly received bribes in connection with subcontract awards. Management has clarified that the investigation is limited to the individual and does not implicate SunCon as a corporate entity. Analysts were briefed following the announcement and concluded that the incident is isolated, with no evidence of systemic failure within SunCon's governance framework. According to MBSB Research, SunCon's internal controls remain robust, reinforced by its ISO 37001:2016 Anti-Bribery Management System certification obtained in May. The group's subcontract awards since 2022 have all been executed through e-bidding platforms that prioritise transparency and cost efficiency. The company has undergone recent audits by MRT Corp, Ernst & Young and SIRIM, all of which confirmed full compliance with its internal procedures. RHB Research echoed similar sentiments, noting that SunCon's proactive stance in cooperating with authorities and engaging legal counsel underscores its zero-tolerance policy on corruption. The group has also initiated outreach to existing and prospective clients to mitigate any reputational damage and clarify the situation. Although RHB Research lowered SunCon's ESG score slightly from 3.3 to 3.1 due to governance-related adjustments, the research house maintained its confidence in the company's operational resilience and growth trajectory. Both analysts agreed that the company's financials remain unaffected. MBSB highlighted SunCon's outstanding order book of RM7.90 billion as at May 2025, providing multi-year earnings visibility, particularly in the high-growth data centre segment. The group also stands to benefit from potential contract wins under upcoming infrastructure projects such as the Penang LRT, Penang International Airport expansion and MRT3. While SunCon's share price dropped 8.2% to RM5.49 following news of the investigation, analysts see the selloff as a knee-jerk reaction. RHB Research noted that the stock is still trading below its historical P/E range observed during the previous construction cycle, suggesting further upside if sentiment recovers and new project wins materialise. With no disruption to ongoing construction activities and a strong pipeline of internal and external tenders, both RHB and MBSB consider SunCon well-positioned to weather the current episode and continue delivering earnings growth into FY26. Related
New Straits Times
21-07-2025
- Business
- New Straits Times
Bursa Malaysia slips amid cautious sentiment
KUALA LUMPUR: Bursa Malaysia closed lower with slight movement, reflecting a cautious market sentiment amid a mix of domestic and regional factors. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.08 per cent or 1.27 points to end at 1,524.59, down from its previous close of 1,525.86. Market breadth was negative, with 606 losers outpacing 341 gainers, while 506 counters remained unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the marginal dip followed investors' reaction to the Malaysian Anti-Corruption Commission's Op Ways probe, which was launched last Thursday over alleged corruption tied to a data centre project tender. "Despite initial concerns, the impact of the investigation appears confined to selected counters, with no sign of broader market contagion. "This was underscored by today's market performance, where stocks linked to data centres, telecommunications and industrials ranked among the leading gainers, indicating that investor sentiment towards these sectors remains fundamentally resilient," he said. Sedek noted that investors are likely to take a more selective approach, re-evaluating their positions within the data centre and technology sectors instead of opting for widespread sell-offs.
The Sun
21-07-2025
- The Sun
MACC probes RM180m data centre graft case, 20 more witnesses
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) will call up 20 more witnesses as part of its probe into a corruption case linked to a RM180 million data centre construction project tender in Johor. MACC Investigation Division senior director Datuk Zainul Darus confirmed that statements from 12 individuals have already been recorded. Three suspects—a project manager and two company directors—remain under remand, while a female suspect was released after her remand order expired. 'So far, there have been no new arrests in this case,' Zainul said when contacted. Earlier reports revealed shocking details, including an attempt by one suspect to burn nearly RM1 million in cash during an MACC raid under Op Ways. Officers discovered the money in flames at a Petaling Jaya residence. Further searches uncovered RM7.5 million in cash hidden in pillow boxes, along with luxury watches and jewellery. The case involves a contract manager, his wife, and two others detained in the Klang Valley. - Bernama
The Sun
20-07-2025
- Business
- The Sun
MACC probes two more firms in data centre graft scandal
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has uncovered two additional companies suspected of securing data centre construction projects through bribery. The case involves a detained project manager from a prominent construction firm who allegedly demanded kickbacks in exchange for tender advantages. A source revealed that several company directors have been identified and will be called in for questioning. 'The main suspect admitted to requesting around three per cent of the project value from companies seeking contracts,' the source said. The bribes were facilitated by leaking tender details and ensuring priority for paying firms. Payments were made in stages, aligned with project milestones. 'Several million ringgit remain unpaid as per the agreement,' the source added. Earlier reports disclosed that the project manager attempted to destroy nearly RM1 million in cash during an MACC raid under Op Ways. Officers discovered burning RM100 notes at his Petaling Jaya residence, alongside RM7.5 million in cash hidden in pillow boxes, luxury watches, and jewellery. On Friday, MACC arrested a contract manager, his wife, and two others in the Klang Valley over a Johor-based data centre project worth RM180 million. - Bernama
BusinessToday
18-07-2025
- BusinessToday
MACC Arrests Construction Company Personnel Linked To Johor Data Centre Project Corruption Probe
The contract manager of a prominent construction company is among four individuals arrested by the Malaysian Anti-Corruption Commission (MACC) for suspected involvement in corrupt activities related to the procurement of a tender for a data centre construction project in Johor, valued at about RM180 million. According to a source, the manager, his wife, and two others were arrested in an operation, Op Ways, in the Klang Valley yesterday. During the operation, the MACC also seized about RM7.5 million in cash found at the contract manager's residence. 'The money is believed to be bribes paid to the suspect for obtaining six tenders for the project. Initial investigations found that the suspect set a bribe payment of 2.5 per cent for each tender obtained,' said the source. Putrajaya Magistrate Irza Zulaikha Rohanuddin has issued a remand order for seven days until July 24 against the accused, who is now on remand for seven days until July 24, while the remand order for his wife was for three days. The other two suspects, both male, were ordered to be on remand for five days until July 22. Meanwhile, when contacted, MACC Deputy Chief Commissioner (Operations) Datuk Seri Ahmad Khusairi Yahaya confirmed the arrest. He said the case is being investigated under Section 16(a)(A) and Section 17(A) of the MACC Act 2009. Related
