Latest news with #SunwayConstructionGroupBhd
New Straits Times
22-07-2025
- Business
- New Straits Times
SunCon brushes off corruption concerns, reaffirms growth outlook
KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has acted swiftly to reassure investors and clients, dismissing concerns over its long-term prospects following the remand of an employee by the Malaysian Anti-Corruption Commission (MACC) over subcontractor-related dealings. In an investor briefing led by group managing director Liew Kok Wing, SunCon firmly dismissed concerns over its operational integrity and future prospects. The company clarified that the case involves a single contract manager and a few subcontractors – not the company itself. It stressed that the incident is isolated and that SunCon is fully cooperating with the authorities, according to a research note by Maybank Investment Bank (Maybank IB). The employee has been suspended and will be terminated after the remand period, SunCon confirmed. SunCon also reported that it has been in active communication with clients to explain the situation. So far, responses have been supportive, and the group does not expect any disruption to its ongoing projects, Maybank IB said. To further strengthen investor confidence, SunCon highlighted that it obtained Anti-Bribery Management Systems (ABMS) certification just two months ago. The certification was audited by SIRIM and external parties, reinforcing the group's governance credentials. It also reaffirmed that subcontracting tenders are conducted electronically and awarded strictly based on the lowest bid among local companies. "It believes its standard operating procedures (SOPs) are sound and the aforementioned case involved just that 1 employee. SCGB revealed that it conducts subcontracting tenders electronically and only awards to local companies that offer the lowest bid," Maybank IB said. While acknowledging some reputational impact, SunCon believes the long-term outlook remains intact. "At the very least, it does not expect its existing projects to be affected. SunCon stated that its clients have been receptive of its explanation. Given SunCon's explanation, we believe there should not be too many negative repercussions over time once the case is settled, though there may be near-term distractions," Maybank IB said. The research house reaffirmed its "BUY" recommendation on SunCon, maintaining a target price of RM6.72, premised on a 24x fiscal year 2026 price-to-earnings ratio and anchored by annual job win expectations of RM7 billion. The stock was among the most actively traded in the morning session, with over 11.69 million shares changing hands. As of 10.24am, the stock fell to an intraday low of RM5.29, down 20 sen or 3.6 per cent from Monday's close of RM5.49.
The Star
22-07-2025
- Business
- The Star
Trading ideas: SunCon, Cahya Mata, Aneka, PJBumi, Atlan, Apex, FACB, Prolintas, Green Packet, Oxford Innotech, CLMT, United Plantations
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Sunway Construction Group Bhd said one of its employees is being investigated by the country's anti-graft agency over engagements with unnamed sub-contractors. Cahya Mata Sarawak Bhd 's unit Cahya Mata Cement Sdn Bhd has awarded a RM673mn contract to Sinoma Industry Engineering (M) Sdn Bhd to build a new 6,000-tonnes-per-day clinker line at its Mambong Integrated Plant in Kuching. Aneka Jaringan Holdings Bhd has won a RM72.3mn contract to undertake piling works for a proposed data centre development in Eco Business Park V, Ijok, Selangor. PJBumi Bhd has clinched a contract for the supply of its ADiRA BioReactor technology to process up to 20 tonnes per day of municipal solid waste in Indonesia. Atlan Holdings Bhd is proposing to dispose of its entire issued and paid-up share capital in United Industries Holdings Sdn Bhd to Singapore-based Duty Free International Ltd for RM175mn. Apex Healthcare Bhd climbed to an eight-month high on Monday following news that the founding Kee family could be looking to exit the pharmaceutical company. FACB Industries Incorporated Bhd has received a privatisation offer worth RM134.2mn from Chen Yiy Fon, the son of its late founder. Prolintas Managers Sdn Bhd, the trustee-manager of Prolintas Infra Business Trust , has appointed Mohamad Idros Mosin as its chief executive officer effective Monday (July 21), filling a leadership vacuum that had been managed by an interim executive team since earlier this year. Green Packet Bhd has appointed Datuk Wira Shahul Hameed Shaik Dawood as its new managing director and group chief executive officer, effective Monday. Oxford Innotech Bhd's initial public offering has been oversubscribed by 3.4 times ahead of its listing on the ACE Market of Bursa Malaysia on July 29. Capitaland Malaysia Trust , which reported a 7.3% increase in net property income to RM138.8mn in the 1HFY25, remains positive on its prospects for the second half of this year, but has flagged uncertainties stemming from the expanded sales and service tax and electricity tariffs revision. United Plantations Bhd reported a 34.1% YoY jump in its second quarter net profit to RM249.4mn from RM185.9mn, driven by higher revenue.
Focus Malaysia
21-07-2025
- Business
- Focus Malaysia
MACC data bribery probe scare triggers SunCon share dumping as price dips 21% before recovering
CONSTRUCTION giant Sunway Construction Group Bhd (SunCon) saw its share price tanked as much as 21% this morning (July 21) before it was able to par losses as the Malaysian Anti-Corruption Commission (MACC) claimed to have identified two more companies linked to data centre bribery. SunCon which opened at RM5.83 plunged to a two-month low of RM4.93 before intense bargain hunting pushed up its share price to above the RM5.20 level at the time of writing with more than 62 million shares transacted. It had closed up by 20 sen or 3.46% on Friday (July 16) to RM5.98 as it inched closer to its all-time high of RM6.26 posted on June 11 with a volume of 10.67 million shares In fact, SunCon's parent, Sunway Bhd, was similarly impacted with a share price reversal to an intra-day low of RM4.66 or 8% from Friday's (July 18) closing of RM5.06 before staging a rebound to consolidate around RM4.80. For the record, MACC had reportedly identified two more companies that secured data centre projects through bribes given to a project manager of a construction company who was arrested recently. According to a source, several company directors have also been identified during the course of the investigation. 'Investigations also found that the main suspect, the project manager, admitted to demanding 3% of the project value from any company seeking to obtain projects from the prominent construction company,' the New Straits Times cited the source as revealing yesterday (July 20). It was exposed that this was done by leaking project tender prices and assisting to ensure that companies which paid the bribes would secure the tenders. It was reported on Saturday (July 19) that a project manager of a construction company burnt nearly RM1 mil n cash when the MACC raided his home in Petaling Jaya on Thursday (July 17). Sources said that during the raid at his home in Petaling Jaya, the graft buster team discovered nearly RM1 mil RM100 notes that had been burned. The raiding team had also found RM7.5 mil in cash hidden in several pillow boxes along with three luxury watches comprising Rolex, Omega and Cartier as well as jewellery including rings and gold coins. The suspect, along with his wife and two company directors were eventually arrested on Friday (July 18) in connection with the corruption case involving the procurement of a data centre construction project in Johor worth around RM180 mil. The project manager was remanded for seven days, his wife for three days, while the two company directors were remanded for five days. At 12.09pm. SunCon was down 73 sen or 12.21% to RM5.25 with 63.95 million shares traded, this valuing the company at RM6.9 bil. – July 21, 2025
The Star
21-07-2025
- Business
- The Star
Intraday short-selling of SunCon shares suspended after price plunge
KUALA LUMPUR: Intraday short-selling (IDSS) of Sunway Construction Group Bhd 's (SunCon) shares have been suspended for the remainder of the day following a drop of more than 15% in its share value. Shares in the construction firm fell as much as 17.56% or RM1.05 in intra-morning trade to RM4.93 a share. As at 10.12am, the share was trading 16.56% or 99 sen lower at a two-month low of RM4.99 a share after 26.57 million shares changed hands. Bursa Malaysia announced the short selling under IDSS will only be activated at 8.30am on the following trading day, Tuesday, July 22, 2025.
The Star
08-07-2025
- Business
- The Star
Possible restriction on chips looms over SunCon
PETALING JAYA: While a knee-jerk reaction is expected for Sunway Construction Group Bhd (SunCon) following news last week of a possible US plan to restrict shipments of artificial intelligence (AI) chips to Malaysia, estimates for the group have been left unchanged, analysts say. Maybank Investment Bank Research (Maybank IB) believes it is still too premature at this point to pass judgement. 'However, we highlight two possible scenarios – worst case fair value of RM2.16 if annual job wins fall to RM1.6bil, and share price falling to as low as RM3.36 on a price-to-earnings multiple derating to trough levels.' Maybank IB said its current target price of RM6.72 and its 'buy' rating were premised on annual job wins of RM7bil. SunCon shares were at RM5.87, down 12 sen or 2%, yesterday afternoon. It ended the day at RM5.88. Last Saturday, it was reported that the United States was planning to restrict shipments of AI chips that power data centres to Malaysia and Thailand, which suggests that the construction of data centres may decelerate and affect contractors such as SunCon. 'Of all the contractors under our coverage, it is the most exposed to data centres,' the research house said. As of May 31, data centres accounted for 51% of SunCon's RM7.9bil order book and 54% of its RM3.5bil year-to-date (YTD) job wins. From 2020 to last year, SunCon won an average of RM1.6bil of non-data centre jobs a year, it added. The builder's YTD job wins of RM3.5bil comprised data centres at 54% and 46% other jobs. 'Assuming SunCon does not win any more data centre jobs from the second half of this year (2H25) but only wins RM1.6bil of non-data centre jobs a year (half-year impact in 2H25), our FY25 to FY27 earnings per share (EPS) could drop by 5%, 43% and 67% respectively. 'Ascribing a 19 times price-to-earnings multiple to FY27 EPS, when the lower job wins would have largely played out, a situational 'worst case' fair value works out to be RM2.16,' the research house said. Downside risks for SunCon include slower-than-expected progress at existing projects which will affect the timing of earnings recognition, the research house said. Maybank IB also said the timing of the rollouts for large infrastructure projects by the government could affect order book replenishment. 'In the precast-concrete segment, significant increase in steel prices and stiffer competition could also affect margins,' the research house said.
