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
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Our latest research

26 Aug 2026
WuXi Biologics (Cayman) (2269 HK): 1H26: Exceeds Expectations; Robust Demand Fuels Accelerated Growth

26 Aug 2026

