Latest news with #SunwayConstruction
Free Malaysia Today
22-07-2025
- Business
- 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.
The Star
22-07-2025
- Business
- The Star
Flattish start points to range-bound trading
KUALA LUMPUR: The FBM KLCI maintained an uncertain undertone to open a fraction higher on Tuesday, pointing to another session of range-bound trading amid the ongoing consolidation. The index of Malaysian blue chips was up 1.7 points to 1,526.29, inching slightly higher on the back of Wall Street's mostly positive performance overnight. US equities prices were pushed higher on the back of positive corporate earnings, bringing the S&P500 and Nasdaq to fresh record levels, even as the Dow Jones ended flat. The US rally may lead to a spillover effect on Asian markets, which could be seeing a resurgence of positive sentiment going by recent firm prices. In the headlines recently, Sunway Construction has been sold down on news one of its employees was being investigated by the country's anti-graft agency for bribery. However, analysts say the price weakness could be only temporary given the isolated nature of the incident, which is not expected to impact the company's financials. "Despite the MACC's investigation into a RM180mil data centre project in Johor, we view this as a buy-on-dip opportunity for Sunway Construction, Sunway and other data centre-related counters, supported by their strong fundamentals, solid order book providing 2–3 years of earnings visibility, and the ongoing data centre boom in the country," said Malacca Securities. As at 9.15am, shares in Sunway Construction were down one sen to RM5.48 while parent Sunway dipped two sen to RM4.87. Among the actives on the market, NexG rose one sen to 51.5 sen, TWL dropped 0.5 sen to 2.5 sen and iCents gained 2.5 sen to 40 sen.
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New Straits Times
21-07-2025
- Business
- New Straits Times
MARKET PULSE PM JULY 21, 2025 [WATCH]
KUALA LUMPUR: News on stock, crypto and ringgit moves. Bursa Malaysia closed the day with marginal movement, reflecting a cautious sentiment amid mixed domestic and regional developments. Among the most actively traded stocks were Sunway Construction, NexG and Pharmaniaga. Meanwhile, the ringgit ended higher against the US dollar, closing at 4.2335. In the cryptocurrency market, Bitcoin is trading around RM498,999, while Ethereum is hovering near RM15,864. Analysts noted that Bitcoin's share of the total cryptocurrency market capitalisation has declined over the past week as altcoins continue to outperform the leading digital asset. This may signal the early stages of an altcoin season, although it is still too early to confirm. That wraps up today's Market Pulse.
The Star
21-07-2025
- Business
- The Star
Bursa slips as investors await new buying leads
KUALA LUMPUR: Bursa Malaysia turned bearish on Monday as - short of buying catalysts - investors realised profits made during a two-day rally last week. At 12.30pm, the benchmark FBM KLCI was down 5.27 points to 1,520.59, reflecting the ongoing downside bias amid a challenging investing environment. Blue chips and lower liners alike were seeing selling pressure, with 639 total shares dipping into the red as compared to 230 gainers for a negative ratio of nearly 3-to-1. Volume on the market was 2.34 billion shares changing hands for RM1.43bil. Feeling the heat from sellers today was Sunway Construction, which dove 80 sen to RM5.18, off an intramorning low of RM4.92. Parent company Sunway dropped 21 sen to RM4.85, in tandem with the selling pressure. Meanwhile, Gamuda shed nine sen to RM5.24 while Nestle fell 34 sen to RM75.40. In regional markets, equities managed to hold steady in light of the corporate results period picking up pace in the US, with investors training their eyes on big tech earnings secheduled for this week. China's composite index was up 0.44% to 3,549 while Hong Hong Kong's Hang Seng gained 0.28% to 24,895. Japan, which recently saw its ruling government lose control of the upper house of parliament, was closed for a national holiday.
Free Malaysia Today
19-06-2025
- Business
- Free Malaysia Today
Malaysian data centres not impacted by Nvidia chip uproar
The US government has imposed restrictions on exports of advanced artificial intelligence chips to China. (Freepik pic) PETALING JAYA : Malaysia's burgeoning data centre sector is unlikely to be derailed by reports alleging Chinese firms are using servers with Nvidia chips to train artificial intelligence (AI) models in the country, said MIDF Research. The research house believes the US-made Nvidia chips involved were those of previous generations and not the latest GB200 AI chips, on which the US government has imposed restrictions on export to China. MIDF noted there is no evident slowdown or delay in data centre projects in the pipeline despite the latest development. 'Contractors are still actively bidding for new data centre construction jobs,' it said in a note today. This includes Gamuda Bhd which is selling 389 acres in Port Dickson to Google-linked Pearl Computing and securing a RM1.01 billion contract for data centre infrastructure works. In addition, Sunway Construction Group Bhd has secured a RM1.16 billion job from a US tech giant while Microsoft reaffirmed its RM10.5 billion investment in cloud and AI infrastructure, including hyperscale data centres, in the Klang Valley. MIDF also noted that not all data centres in the country are built specifically for AI, even though many are AI-ready. For example, YTL Power International Bhd only set aside 100MW for AI at its 500MW Kulai, Johor, facility. The investment, trade and industry ministry (Miti) is currently investigating claims that a Chinese tech company is training artificial intelligence (AI) models in Malaysia using Nvidia-powered servers. Sidestepping US restrictions? This follows a Wall Street Journal report on allegations a Chinese company had in recent months been using Malaysia-based data centres to sidestep US restrictions on advanced chips. The ministry said yesterday it is still in the process of verifying the matter with relevant agencies to determine if any local laws have been violated. However, it noted such servers were not categorised as controlled items under the Strategic Trade Act 2010, and that local data centres were 'free to operate commercially, provided they adhered to Malaysian regulations'. Still, Malaysia would stand firm against any individual or company that attempted to circumvent export controls or engage in illicit trade activities, it said. It also affirmed Malaysia's compliance with global trade rules, including export controls relevant to the semiconductor and AI sectors. 'The ministry will always act firmly against any company operating in Malaysia, including those involved in the semiconductor and AI industries, that violates Malaysian and international trading regulations,' the statement said. Malaysia not taking sides Emphasising that Malaysia did not take sides over unilateral sanctions, Miti reminded companies operating here to comply with other countries' export controls in their international dealings to 'avoid secondary sanctions'. The rising geopolitical tensions between the US and China, especially in the area of advanced technology and AI, is spilling over to this region. It may have an adverse impact on Malaysia's strategic move to position itself as an early mover in AI. This is a mandate from Prime Minister Anwar Ibrahim, who has stated the government is committed to propelling the nation as 'a leading AI hub in Southeast Asia'. AI requires significant computing power using advanced chips to run machine learning algorithms, perform complex data analyses, and make real-time, data-driven decisions. Data centres are the core infrastructure needed to meet these demands and fully unlock AI's potential. Malaysia's data centre market is projected to grow substantially, with estimates indicating a rise from US$4.04 billion (RM17.2 billion) in 2024 to US$13.57 billion (RM57.8 billion) by 2030, according to the Malaysian Investment Development Authority.
