SunCon Secures 67% of FY2019 Target in First Quarter
Secured 67% of FY2019 target new order book of RM1.5 billion.
Outstanding order book of RM5.7 billion.
Plans to sustain performance through ASEAN expansion strategy and internal orders.
Revenue of RM 440.0 million and profit before tax of RM 40.1 for FY2019 Q1.
Sunway Construction Group Berhad (SunCon) reported that it has secured 67 percent of its targeted order book replenishment of RM 1.5 billion for the 2019 financial year in its first quarter, bringing its outstanding order book to RM 5.7 billion providing good earnings visibility for the Group for the next 2 years.
Of the RM 1.0 billion new projects secured, 10% of the new orders are from its parent company, Sunway Berhad.
Moving forward, we are confident we will sustain our performance through the year and meet our targeted order book replenishment through our ASEAN expansion strategy, and good prospects presented by Sunway Berhad’s plans to expand its healthcare division.– SUNWAY CONSTRUCTION GROUP MANAGING DIRECTOR CHUNG SOO KIONG –
“As part of our ASEAN expansion strategy, we have signed a Memorandum of Understanding (MOU) with CDL Group in April in Myanmar, have tendered for three rail and road projects in India and ventured into piling in Singapore. With these prospects, we look to mitigate the effects of the current review period that the local industry is undergoing,” he added.
For its first quarter of 2019, ended 31 March 2019, SunCon reported a revenue of RM440.0 million and a profit before tax of RM40.1 million, compared to revenue of RM 529.2 million and restated profit before tax of RM 43.6 million in the corresponding quarter of the preceding financial year with improvements in profit before tax margin to 9.2% from the previous 8.3%.
Its construction segment reported revenue of RM407.0 million and profit before tax of RM40.0 million compared to revenue of RM492.1 million and restated profit before tax of RM40.0 million in the corresponding quarter of the preceding financial year. The lower revenue in current quarter was due to Parcel F, Putrajaya which was substantially completed this quarter.