, pub-5475981771945671, DIRECT, f08c47fec0942fa0

Sunway Construction Records Strong Growth in 1Q22

Sunway Construction Records Strong Growth in 1Q22

Sunway City Kuala Lumpur, 25 May 2022 – Sunway Construction Group Bhd reported a set of strong financial performance amidst rising material costs.

Revenue for the Group surged 37.2% year-on-year (y-o-y) to RM624.7 million in 1Q 2022, underpinned by strong growth from Construction and Precast segments. Profit before tax (PBT) soared 73.1% y-o-y to RM47.2 million on the back of higher profit contribution from the Construction segment. 

For the quarter ended 31 March 2022, Construction segment registered a jump in revenue of 39.5% y-o-y to RM587.8 million, from RM421.3 million in 1Q 2021.

The significant improvement in revenue for the quarter under review was due to normalisation of construction activities to the pre-pandemic level.

Construction activities in the same quarter in the preceding year was adversely affected by Movement Control Order 2.0 (MCO 2.0) which was implemented from 13 January 2021 to 4 March 2021.

PBT close to double, from RM23.7 million in 1Q 2021 to RM46.2 million in 1Q 2022 and PBT margin for the current quarter improved from 5.6% in 1Q 2021 to 7.9% in 1Q 2022 due to final account for completed projects.  

Precast segment’s revenue increased 8.9% y-o-y to RM36.9 million for the quarter under review, supported by higher outstanding order book.

Sunway productivity

PBT stood at RM1.0 million in 1Q 2022, from RM3.5 million in the corresponding quarter in the preceding year. PBT for the current quarter reflects the impact of higher steel bar prices. 

Sunway Construction Group Managing Director Liew Kok Wing says, “We are pleased that productivity has recovered to pre-pandemic level which contributed to strong growth in the current quarter amidst rising material costs. We are cautiously optimistic that the Group is in a good position to register commendable growth in this financial year based on our existing order book.”

“We are actively pursuing opportunities in the private and public sectors, including Private Funding Initiatives projects. We believe that we are well positioned to participate in the tender for any large infrastructure projects based on the Group’s solid financial position and strong track record locally and abroad in highway projects as well as urban rail transit projects, such as the MRT 1 & 2, LRT 2 & 3 and BRT.”   

“The Group will continue to expand its regional footprint, primarily targeting India and the larger ASEAN region to capitalise on opportunities in the region.”