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KUALA LUMPUR (Feb 25): Sunway Construction Group Bhd (KL:SUNCON) rose to new record highs on Tuesday after the builder reported a set of results that exceeded market expectations.
Net earnings for the year ended Dec 31, 2025 (FY2025) announced on Monday was more than 20% above the consensus estimates, prompting analysts to raise their forecasts and target prices for Sunway Construction.
The company’s own target is to win jobs worth up to RM6 billion this year, though robust data centre pipeline “amplifies upside risks,” said Hong Leong Investment Bank. Several data centre tenders remain outstanding, “some of which are high certainty existing clients” for Sunway Construction, the research house noted.
The stock rose as much as 31 sen or 4.91% to RM6.62. At market close, it eased to RM6.59, still up 28 sen or 4.44% after nearly nine million shares changed hands. At the last price, the company had a market capitalisation of RM8.6 billion.
Shares of Sunway Construction have gained more than 14% since the start of 2026, riding on mushrooming data centre projects to cater to demand for advanced computing and artificial intelligence applications.
The consensus is nearly unanimous on their outlook for Sunway Construction, with 12 out of 15 research houses recommending 'buy' and the rest on 'hold' calls. The average target price is now RM6.95, following the latest revisions by analysts tracked by Bloomberg.
For Kenanga Investment Bank, Sunway Construction’s “exceptional margin strength” from data centre projects seen in the final quarter of 2025 is expected to persist into the first months of 2026 as “work momentum remains high”.
The company is currently bidding for contracts worth RM17.5 billion, including eight jobs related to data centres exceeding 700 megawatts, the research house said, noting other projects in the pipeline, including the second package of the Penang Light Rail Transit.
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