Company Coverage
Sunway Construction (SCGB MK): 2Q26: Stellar Quarter Matching Expectations
HOLD (Downgraded)
Current price:
Target price:
Upside:
Previous TP :
RM8.08
RM8.44
+4.5%
RM7.88
Analyst
Analyst
Highlights
1H26 earnings were within expectations, making up 50% and 51% of our and consensus full-year estimates, respectively. Yoy growth was mainly driven by a favourable project mix which lifted blended margins.
Declared interim of 4 sen, bringing 1H26 dividend to 26.8 sen (1H25: 12.25sen) which implies a payout ratio of 163% and a yield of 3.3%
Downgrade to HOLD despite a higher target price of RM8.44 (from RM7.88), which implies 21.6x 2027F PE (+1SD above five-year mean of 18x), following an impressive share price rally.

Analysis
2Q26 results matching expectations. Sunway Construction’s (Suncon) 2Q26 core net profit came in at RM104.3m (-9% qoq, +11% yoy), despite a lower revenue of RM1.02b (-1% qoq, -31% yoy). 1H26 earnings made up 50% and 51% of our and consensus full-year estimates respectively.

Highlights
1H26 earnings were within expectations, making up 50% and 51% of our and consensus full-year estimates, respectively. Yoy growth was mainly driven by a favourable project mix which lifted blended margins.
Declared interim of 4 sen, bringing 1H26 dividend to 26.8 sen (1H25: 12.25sen) which implies a payout ratio of 163% and a yield of 3.3%
Downgrade to HOLD despite a higher target price of RM8.44 (from RM7.88), which implies 21.6x 2027F PE (+1SD above five-year mean of 18x), following an impressive share price rally.

Analysis
2Q26 results matching expectations. Sunway Construction’s (Suncon) 2Q26 core net profit came in at RM104.3m (-9% qoq, +11% yoy), despite a lower revenue of RM1.02b (-1% qoq, -31% yoy). 1H26 earnings made up 50% and 51% of our and consensus full-year estimates respectively.

HOLD (Downgraded)
Current price:
Target price:
Upside:
Previous TP :
RM8.08
RM8.44
+4.5%
RM7.88
Analyst
Analyst
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