TA Securities Upgrades SUNCON to Buy as RM1.7bn Data-Centre Win Lifts Order Book to RM13.4bn

StockTipRatings · November 6, 2026

TA Securities analyst Ng Hong Tong upgraded Sunway Construction Group to “Buy” from “Hold”, raising his target price to RM9.05 from RM8.15, implying 16.8% upside. Stronger-than-expected contract wins prompted him to raise earnings forecasts, with the enlarged order book improving visibility for future growth.

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The company secured a RM1.74 billion contract from an international hyperscaler to develop a data centre in Bandar Serendah, Selangor, covering structural construction, campus infrastructure and mechanical, electrical and plumbing works. Construction is expected to run from 4Q26 to 4Q28.

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The award lifts year-to-date contract wins to approximately RM9.8 billion, exceeding management’s RM7 billion–RM9 billion target, and increases the outstanding order book to approximately RM13.4 billion.

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Ng estimates the contract could contribute RM104.4 million–RM121.8 million in net profit over its duration, assuming a 6%–7% net margin. He raised his 2026 new-contract assumption to RM10.5 billion from RM8 billion and increased 2026–2028 earnings forecasts by 7.6%, 11.0% and 17.2%, respectively. He now forecasts net profit of RM528.8 million in 2027 and RM590.8 million in 2028, supported by stronger orders and revised project-execution assumptions.

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As of 9:16 a.m. on November 6, Sunway Construction Group’s share price fell 2.1% to RM7.59.

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