SUNCON (5263): Stocks Analysis and Forecast 2025

Key Takeaways

• SUNCON (5263.BMS) is the stock of Sunway Construction Group Berhad, a top-tier Malaysian construction company focusing on infrastructure, building, and precast concrete, with operations spanning Malaysia, Singapore, India, and the UAE.
• Strong financial performance underpins investment appeal, with Q2 2025 revenue and net profit up over 126% and 149% YoY respectively, backed by a growing order book, high ROE, and active institutional support.
• The stock rose steadily in 2025, aided by contract wins and sector recovery; currently trading near RM5.91 with a bullish technical outlook and potential upside to RM6.20–RM6.50.
• SUNCON’s Q2 2025 earnings show substantial growth in EPS and profitability, supported by a 6.38% net margin and rising cash flow, although leverage is also increasing.
• The company pays consistent quarterly cash dividends, supported by stable earnings and free cash flow, offering a modest yield (~1.0%) reflective of strategic reinvestment priorities.

What is SUNCON (5263.BMS) Stock?

SUNCON (5263.BMS) stock represents Sunway Construction Group Berhad, a leading construction company listed on Bursa Malaysia. Founded in 1976, SUNCON operates through two primary segments: Construction and Precast Concrete. The company delivers a broad range of services including civil engineering, building construction, and mechanical and electrical works, with its primary revenue driven by the construction segment. SUNCON stock is closely associated with infrastructure growth and data center development in Malaysia and across selected international markets like Singapore, India, and the UAE. As part of the Sunway Group, the company enjoys synergies in large-scale property and infrastructure projects. Investors often consider SUNCON stock a key player within Malaysia's construction sector due to its robust project pipeline, diversified order book, and consistent financial performance. With a strategic focus on next-generation infrastructure such as data centers, SUNCON continues to attract market interest among those tracking Malaysia-based construction stocks.

Why Consider Investing in Sunway Construction Group Berhad (SUNCON 5263.BMS) Stock?

Comprehensive Financial Performance and Income Growth

Sunway Construction Group Berhad (SUNCON) has demonstrated exceptional financial performance in recent quarters. In Q2 2025, operating revenue surged 126.78% year-over-year to RM1.48 billion, while net profit climbed 149.52% YoY to RM94.24 million. This growth wasn't a fluke; Q1 2025 also showed robust numbers with revenue of RM1.40 billion and a 162.05% YoY jump in net profit. Over the last financial year (FY2024), the company recorded a net profit of RM186.91 million, marking a 28.80% increase from FY2023.

With a strong ROE of 22.01% in FY2024 and a consistent rise in EPS, which reached 0.06 in Q2 2025 (+113.62% YoY), the earnings capability of SUNCON is compelling. Moreover, free cash flow (FCF) for Q2 2025 stood at RM434.47 million—almost double from the previous year—highlighting solid liquidity and operational efficiency.

Market Position and Industry Growth Potential

SUNCON is a key player in Malaysia’s construction and engineering sector and maintains dual focus areas: construction and precast concrete. Its revenue composition in FY2024 confirms construction as its backbone, contributing RM4.27 billion (over 120% due to accounting eliminations adjustment), underscoring its project fulfillment strength. A major advantage is its affiliation with parent Sunway Berhad, opening doors to steady internal project pipelines.

The company recently received recognition via The Edge Billion Ringgit Club Award for highest growth in profit after tax over three years. With a three-year net profit CAGR of 18.4%, it leaves many sector peers behind. This achievement, coupled with an expanding order book and reputed clientele—including multinational corporations—supports a strong growth outlook, even as Malaysia’s construction sector recovers post-pandemic.

Institutional Confidence and Capital Flow Trends

Institutional investors hold over 76% of SUNCON shares, implying high confidence in its fundamentals. Major stakeholders include Sunway Berhad (53.29%), Active Equity Sdn Bhd, and the Employees Provident Fund (EPF). However, a slight reduction in institutional holdings was noted mid-2025, potentially indicating short-term reallocations rather than a strategic shift.

Analyzing recent capital flow data, the main-board net inflow fluctuated but remained positive at key points—for example, Oct 29, 2025, saw RM2.41 million in main net inflows driven largely by big orders. This kind of participation generally reflects the interest of larger investors buying in at strategic levels. Despite lower net inflows on other days, the overall stability signals underlying market support.

Technical Evaluation and Chart Sentiment

From a technical perspective, SUNCON is trading around RM5.90, very close to its recent resistance at RM6.02. Medium-term moving averages such as the 5-day, 10-day, and 20-day MA are starting to converge, a signal that momentum may build soon. RSI(14) stands at 44.6—neutral range, meaning the stock is neither overbought nor oversold and could be at a consolidation stage with potential breakout opportunities.

Other indicators like the MACD line have recently crossed above the signal line, and KDJ values are recovering from oversold zones—technical traders may interpret this as a bullish shift. These gentle bullish signs, when combined with long-term growth, make it an attractive entry point for position traders.

Track Record of Dividends and Shareholder Value

For income-focused investors, SUNCON offers consistent dividends. It declared a dividend per share of RM0.135 recently, translating to an approximate yield of 2.29%—decent in the construction sector. The company’s dividend policy reflects a balanced approach: sharing profits while maintaining capital for reinvestment. A history of stable payouts mirrors its commitment to shareholder returns, which appeals to both capital gains seekers and income investors.

How to Buy SUNWAY CONSTRUCTION GROUP BERHAD (5263.BMS) Stock in Malaysia

Step 1: Open a Trading Account

Before you can buy shares of SUNWAY CONSTRUCTION GROUP BERHAD (SUNCON), you’ll need to open a Central Depository System (CDS) account and a trading account with a licensed broker in Malaysia, such as moomoo. For Malaysian citizens, you’ll need a valid MyKad, a bank account, and proof of residential address (e.g., utility bill or bank statement within the last 3 months). Foreign investors must provide a valid passport, proof of foreign address, and banking details. The account approval process typically takes 2 to 5 working days, depending on the completeness of your documents.

Step 2: Fund Your Account

Once your trading account is activated, the next step is to fund it. Malaysian brokers generally accept funding via online bank transfers, FPX (Financial Process Exchange) payments, and selected e-wallets. Ensure your account balance is sufficient to cover the share price of SUNCON (currently MYR 5.91 as of October 31, 2025) and any associated brokerage fees or clearing charges before placing an order.

Step 3: Do Your Research on SUNCON (5263.BMS)

It’s important to evaluate SUNCON's market performance before investing. SUNCON’s recent trading price has ranged between MYR 5.79 and MYR 5.93 over the past week with moderate volume and a P/E ratio of 27.75 (TTM), suggesting reasonable valuation within the construction industry. Analyze indicators like RSI (currently neutral at 44.6), MACD trends, and institutional ownership levels (Sunway Berhad holds a 53.3% stake) to shape your investment decision. Also review SUNCON’s dividend yield (1.52%) and its historical earnings growth, which has been robust at a CAGR of 18.4% over the past three years.

Step 4: Place an Order

With your research in hand, you can now place a buy order via your brokerage platform. On moomoo, login to your trading dashboard, search "SUNCON" or use stock code “5263.BMS,” and click “Buy.” Enter the number of shares, select your order type (limit or market), and confirm the transaction. Keep an eye on the order book and real-time bid/ask spread to optimize your execution price. Once the order is filled, the shares will be reflected in your portfolio.

Sunway Construction Group Berhad (SUNCON 5263.BMS) Stock Price Performance

What is Sunway Construction Group Berhad Stock Price?

As of October 31, 2025, Sunway Construction Group Berhad (SUNCON 5263.BMS) closed at RM5.91, up 0.17% from the previous day's close of RM5.90. In the month-to-date comparison, the stock has risen around 1.2%, bouncing from RM5.83 on October 23. Year-to-date, the stock has delivered impressive upside from lows below RM3.50, reflecting bullish sentiment driven by back-to-back contract wins, strong revenue growth, and solid quarterly earnings. SUNCON’s strong fundamentals are exemplified by a trailing twelve months (TTM) P/E of 27.75 and a return on equity (ROE) of 22.01% in FY2024. However, its high P/B ratio of 7.58 signals elevated valuation pressure. Being a key infrastructure play in Malaysia, Sunway Construction is well-positioned to benefit from government megaprojects, while also facing challenges from high material costs and labor constraints.

Historical Sunway Construction Group Berhad Stock Price Movements Analysis

Over the past 30 trading days, SUNCON has shown a modest upward trajectory. The formation of higher lows and mild price consolidations points to a stable ascending pattern typical in recovery phases. The K-Line (candlestick) chart for Oct 23 to Oct 31 shows increased buying pressure with consistent closes above the previous day’s open, and a recent breakout over RM5.90 resistance into RM6.02 intraday highs. RSI levels around 47.8 and an improving MACD histogram suggest rising momentum without yet being overbought. Moving averages for the 5, 10, and 20-day periods are also converging toward a bullish crossover. If the stock can sustain volume above 7 million shares with price above RM5.95, a move toward RM6.10–6.20 is plausible. Conversely, support lies firmly at RM5.80 in the short term.

Sunway Construction Group Berhad (SUNCON 5263.BMS) Forecast

Looking ahead, SUNCON is expected to maintain its growth trajectory, supported by its robust order book and parent company linkages to Sunway Berhad. With net profit in 2025Q2 growing by 149.5% YoY and a strong Free Cash Flow of RM434.5M, operational resilience remains high. While analysts haven't provided formal EPS forecasts, the company’s recent performance including ROE improvements and sustained revenue CAGR of 18.4% over three years paint a constructive outlook. In market perception, the stock may trend toward RM6.20–RM6.50 as sentiment favors infrastructure plays amid government development plans. Investors should watch for new contract announcements and macro signals around construction sector funding in Malaysia as potential catalysts.

SUNWAY CONSTRUCTION GROUP BHD (5263.BMS) Earnings

Does SUNCON (5263.BMS) Release Earnings Reports Regularly?

Yes, Sunway Construction Group Bhd (SUNCON) consistently publishes quarterly earnings reports, providing transparency on its financial performance. Its most recent available report for Q2 2025 continues this trend of timely financial disclosure.

When is the Next SUNCON Earnings Date?

Based on typical quarterly reporting patterns, the next SUNCON earnings announcement, covering Q3 2025, is anticipated in November 2025. Investors are advised to monitor Bursa Malaysia announcements for confirmation.

What Were SUNCON Earnings Last Quarter (Q2 2025)?

SUNCON achieved notable growth across core financial metrics during Q2 2025, indicating strong operational and strategic execution.

Source: Company Reports, access date October 23, 2025 via moomoo.com

• Revenue and Net Profit: Surged by 126.78% and 149.52% YoY respectively, fueled by robust project deliveries, especially in infrastructure and data center sectors.
• EPS Growth: Positive YOY jump of +113.62% confirms efficient cost control and margin expansion.
• Debt-to-Asset Ratio: Rose to 77.28%, indicating higher leverage used likely for strategic expansion amid strong revenue inflows.

What Was Highlighted in the Latest SUNCON Earnings Call?

During the latest SUNCON Earnings Call, management emphasized record-high quarterly revenue and discussed key contract wins in data center infrastructure. The company reiterated its strong visibility on the order book and confidence in sustaining earnings growth through 2025.

Does SUNCON (5263.BMS) Pay Dividends?

Yes, SUNWAY CONSTRUCTION GROUP BERHAD (SUNCON: 5263.BMS) maintains a consistent dividend distribution strategy, reinforcing its position as a reliable dividend-paying construction stock on Bursa Malaysia. As part of its capital management strategy, SUNCON has regularly rewarded shareholders through cash dividend payouts. The company’s dividend activity reflects its robust earnings performance, healthy free cash flow, and solid balance sheet, which have enabled it to sustain shareholder returns even amid industry cyclicality.

In 2025, SUNCON has declared multiple dividend payments, indicating a trend of quarterly distributions. This aligns with the company's continued earnings growth and operating cash flow increases seen through fiscal 2024 into 2025. As SUNCON continues to execute large-scale infrastructure projects and maintain a historically high order book exceeding RM5.8 billion, the outlook for stable dividends remains promising. Leveraging its strong construction dominance and strategic expansion in data center infrastructure and rail projects, the company positions itself favorably for both income-oriented and growth investors.

Dividend Summary of SUNCON (5263.BMS)

SUNCON has adopted a recurring dividend policy, with a trailing twelve-month (TTM) dividend yield of approximately 1.0%, based on the latest declared dividends. The frequency of payouts in 2025 indicates at least three separate cash dividend distributions, suggesting the potential for quarterly payouts. The dividend payout ratio, supported by strong cash flows and moderate debt levels (debt-to-asset ratio at 77.28% in Q2 2025), is reflective of a balanced capital allocation strategy.

• Dividend Yield (TTM): ~1.0%
• Payout Ratio (latest): 47%
• Dividend Frequency: Quarterly (based on 2025 record)
• Dividend Type: Cash
• Latest Ex-Date: 10 October 2025
• Dividend Currency: MYR

Dividend History of SUNCON (5263.BMS)

Source: moomoo Malaysia stock data

How SUNCON’s Dividend Compares Across the Malaysian Construction Sector

SUNCON's dividend yield, while lower than the 5.4% average of Malaysia’s highest-yielding quartile of stocks, is consistent with the construction industry's benchmark, which averages around 3.2%. With a current yield of approximately 1.0%, SUNCON dividend returns are relatively modest, reflecting its reinvestment priorities in new project acquisition and execution. However, its consistent payouts make it a dependable option within the construction sector, especially for investors seeking exposure to capital preservation and recurring income through dividend-paying stocks in Malaysia.

Compared to its peers, SUNCON’s dividends are backed by sturdy fundamentals including a 22.01% ROE in FY2024 and increasing net profits in 2025, underlining sustainable prospects for future dividend expansions.

Risk Assessment for SUNCON (5263.BMS) Stock

Over the past three months, Sunway Construction Group Berhad (SUNCON) has maintained a resilient performance in a robust construction sector, yet some risk elements remain pertinent. From August to October 2025, the stock climbed moderately from RM5.9 to RM5.91 (as of October 31), reflecting market confidence. However, the company demonstrated intermittent capital outflows, with net institutional holdings declining by 5.5% as of July 2025, and consistent short-term negative capital inflows—outflows reached RM163.24K on October 31. These patterns suggest some investor uncertainty despite strong sectoral momentum and optimistic analyst coverage such as HLIB Capital's continued ‘Buy’ rating with a target of RM6.70.

At a macro level, industry concentration presents both rewards and risks. SUNCON generates over 120% of revenue from its construction division, as per FY2024 data, creating dependency on Malaysia’s infrastructure and data center investment cycles. While the government’s Budget 2026 and infrastructure push may fuel growth, any fiscal restraint or political uncertainty could disrupt project pipelines. Additionally, the company’s debt-to-asset ratio increased to 77.28% in Q2 2025 from 73.22% in Q1, indicating higher leverage amid expansion—comparable to adding more water to a balloon already tightly inflated, leaving less room for error should external shocks arise.

From a financial health perspective, while earnings fundamentals appear sound—Q2 EPS rose 113.62% YoY and ROE stood at 8.43%, up 86.70% YoY—liquidity metrics have slightly weakened. The current ratio dipped to 1.12 in Q2 2025 from 1.14 in Q1, indicating tighter short-term asset coverage for liabilities. Combined with significant reliance on mega contracts and high CAPEX cycles typical of the sector, this brings operational gearing risks. Lastly, with a PE TTM of 27.75 and PB ratio of 7.58 (as of Oct 31), valuation premiums could attract price corrections in the face of macroeconomic shocks or execution delays.

Conclusion

Sunway Construction Group Berhad (SUNCON 5263.BMS) has demonstrated strong performance and solid growth potential, making it an attractive consideration for investors in Malaysia’s construction sector. The company posted exceptional financial results, with Q2 2025 revenue and net profit soaring over 126% and 149% year-over-year, respectively. Its consistent quarter-on-quarter earnings growth, robust return on equity (22.01% in FY2024), and substantial free cash flow highlight its operational resilience. Backed by a large and diversified order book, parent company Sunway Berhad, and strategic moves into high-growth areas like data center infrastructure, SUNCON presents a compelling story of strength and stability in a recovering industry.

For investors looking at SUNCON stock in 2025 and beyond, the outlook is promising. While the stock may face short-term fluctuations due to market sentiment and capital flow shifts, its fundamentals remain strong. Technically, the stock is consolidating near key resistance areas, with signals pointing to potential upward momentum. A sensible strategy would be to consider SUNCON for both mid-term capital appreciation and dividend income. Entry opportunities may be optimized around support levels near RM5.80, with an eye on upward targets of RM6.20–RM6.50. Given the company’s solid growth history, recurring dividend payments, and alignment with national infrastructure priorities, SUNCON is well-positioned as a strong construction stock pick within Bursa Malaysia.