FACTORING in this latest win, SUNCON’s financial year 2026 (FY26) new job wins have risen to RM5.8 bil, lifting its total unbilled order book to RM10.4 bil.
This solid order book backlog translates into a commendable 1.9x its FY25 revenue, providing a clear near-term earnings visibility.
At the current new job replenishment rate, Sunway has achieved approximately 89% of TA Securities previous FY26 new job win assumptions of RM6.5 bil.
TA remains constructive on SUNCON’s near-term data centre order book replenishment prospects, with further contract opportunities expected in the second half of calendar year 2026, including the Shell 2 M&E package and the remaining phases of the JHB1X0 data centre campus in Sedenak.
Besides, this contract win came within TA’s expectation, as they had highlighted in their company update report on SUNCON dated 19 December 2025.
“However, the RM1.02 bil contract value came in above our projected contract size of approximately RM900 mil,” said TA.
The research house believes the increase reflects higher construction costs amid recent rising building material and M&E equipment prices, coupled with the increasing complexity of hyperscale data centres, which require more advanced electrical, cooling and backup power systems.
Given the favourable long-term outlook for Malaysia’s data centre industry, and SUNCON’s sizeable tender pipeline of over 800MW worth of DC jobs, TA increases their FY26 new job replenishment assumption to RM7.0 bil (from RM6.5 bil).
“We continue to like SUNCON due to its strong position as a contender for mega infrastructure projects, namely Johor EART and Penang LRT Segment 2,” said TA.
Also, TA has a leading position in securing new contracts within the thriving ATP industry.
Key downside risks include slower-than-expected new job wins, delay in large-scale infrastructure job roll-out and weaker-than-expected property sales.—Aug 4, 2026
Main image: klsescreener.com
