Our building construction services division specialises in the design and construction of special purpose buildings with a proven track record in constructing buildings that have become national landmarks
BUILDING CONSTRUCTION
The civil and infrastructure division specialises in civil and rail infrastructure services and has vast experience in various roads, highways, airports and runways, bridges and rail transportation infrastructure projects over the last 40 years
CIVIL AND INFRASTRUCTURE
SunCon provides mechanical, electrical and plumbing (MEP) services, and specialised engineering solutions as a fully integrated construction services business
MECHANICAL, ELECTRICAL AND PLUMBING
SunCon has expertise in foundation and geotechnical engineering works including piling, large diameter bored piles, diaphragm wall construction, deep basement construction, top down construction and ancillary work
FOUNDATION AND GEOTECHNICAL ENGINEERING
SunCon provides sustainable energy solutions ranging from district cooling plants to renewable energy services such as large scale solar farms, and rooftop solar solutions for residential and commercial buildings, as part of our commitment to reduce the carbon footprint
SUSTAINABLE ENERGY
We develop, design, manufacture and supply precast concrete products with manufacturing plants located in Iskandar and Senai in Johor, Malaysia
MANUFACTURING AND SALE OF PRECAST CONCRETE PRODUCTS
40 YEARS OF CONSTRUCTION EXCELLENCE
Integrated Report 2021
VIEWS FROM THE CHAIRMAN
Dear Shareholders,
Despite the pandemic, SunCon managed to deliver a resilient set of results. We achieved a turnover of RM1.729 billion and PBT of RM152.2 million, with improvement in profit margin to 8.8%. We successfully secured new contracts worth RM1.5 billion and maintained a healthy outstanding order book of RM4.8 billion as at 31 Dec 2021, which is expected to extend till 2023.
Dato’ Ir Goh Chye Koon
Chairman
HOW WE CREATE OUR VALUE
OUR INPUTS
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Supported by:- Robust capital management system to maintain stable financial position
- Internally generated funds and a portion of well-adjusted debt
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Aimed to enhance value through:- Wide range of plant and machinery fleet with total net book value of RM59 million
- Two Precast plants in Johor
- On-going construction of advanced precast manufacturing facility in Singapore which enables the mechanisation of precast components production (ICPH)
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Empowered by our Core Values:- Comprising a diversified workforce of 1,466 employees across all age groups and ethnicity background
- Equipping workforce with technical knowledge and capabilities
- With emphasis on capacity building and talent development by investing RM196,269 to upskill employees through learning programmes in creating future ready workforce
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Leveraging on:- Building Information Modelling (BIM) technology as an enabler for better coordination throughout the construction lifecycle
- Internalising data set and expertise amassed to harness the potential of Virtual Design and Construction beyond 3D models, time and cost, forging towards facility management, sustainability, and safety and health
- Opportunities derived from the 4th Industrial Revolution (IR 4.0) where process automation enhances efficiency and enables business transformation
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Our commitment in reducing our impact to the environment stems from:- Recognising our responsibilities to ensure the realization of SDG 12: Responsible consumption and production across our business operations
- Embedding best management practices in our business activities by investing more than RM883,000 in environmental protection, mitigation and adaptation expenditures
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Strive to be a good corporate citizen by:- Building synergistic partnerships with strategic business associates for more business opportunities and diversification
- Establishing constructive relationships and on-going dialogues with regulators, government bodies
- Contributing to the advancement of the construction industry through active participation in relevant professional bodies
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AND KEY ENABLERS THAT DRIVE US TO CREATE VALUE
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- Aggressive business targets
- Awarded “Highest Return on Equity over Three Years”
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- Global expansion (India, Indonesia, Philipines)
- Creating new products by harnessing the demand for new energy such as district cooling plants and solar energy through our Sustainable Energy Division
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- SunCon’s Integrated QESH manual serves as our cornerstone in QESH management across all our project sites and work offices. Our Precast division also has its own QESH management system
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- Multifaceted HR policies to protect the well-being of our people and to ensure any grievances are resolved promptly, professionally and fairly in the best interests of all parties involved
- All of our Centralised Labour Quarters (CLQ) have received Certificate for Accommodation by Jabatan Tenaga Kerja
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- Established SunCon Anti-Bribery and Corruption and Anti-Money Laundering policy. These policies are linked to Sunway Group’s Code of Conduct and Business Ethics and the Whistle-Blower Policy
- Appointed Compliance Officer to ensure a high standard of compliance to all regulatory and internal requirements
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FROM BUSINESS ACTIVITIES CENTERED ON OUR STRATEGY
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- We aspire to be the leading construction conglomerate by doing the right thing right first time and every time with highest cognizance to our core values: Integrity, Humility and Excellence in creating value to our customers, leveraging our diverse capabilities
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- We aspire to enabling sustainable construction by managing our consumption and generations, and carbon footprint from supply chain while enhancing the value of our products by ensuring product safety and innovation
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- We aspire to investing in fair, safe and inclusive workplace by ensuring the highest level of safety and health compliance at our workplaces to safeguard the well-being of our people while focusing on our human capital development with keen insight on diversity and inclusiveness
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- We aspire to ensuring compliance and embracing transparency by upholding highest level of integrity in all our business dealings and to ensure we operate within the ambit of applicable legal requirements
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SUNCON’S SUSTAINABILITY GOALS AND TARGETS
Future Value 2030 Goals
Our Future Value goals are set to align our sustainability agenda with the UN Sustainable Development Goals.
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Enabling Sustainable Construction
2030 Targets- Achieve reduction of Carbon Emission Intensity per unit revenue by 10% from 2020 levels (Baseline: 98 tonnes CO2e/RM mil)
- Achieve reduction of Water Use Intensity per unit revenue by 10% from 2020 levels (Baseline: 253 m3/RM mil)
- Achieve 10% of waste diversion from landfill
- Achieve 100% major commodity suppliers are ISO 14001 certified
- Maintain ≥80% QLASSIC score for all building projects directly controlled by SunCon
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Investing in Fair, Safe and Inclusive Workplace
2030 Targets- Maintain zero fatality across all worksites directly controlled by SunCon
- Achieve Accident Rate/Lost Time Injury Rate (LTIR) less than 0.3
- Maintain notice received from authorities on vector issues at 0.10 or below across all worksites directly controlled by SunCon
- Achieve an average of 40 Learning and Development (L&D) hours per employee
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Ensuring Compliance and Embracing Transparency
2030 Targets
- Zero tolerance for bribery and corruption
FINANCIAL PERFORMANCE
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REVENUE20212020CONSTRUCTION(RM' MILLION)1,606.2
Construction SegmentRevenue improved this current financial year as the impact of COVID-19 was less severe than last year due to vaccination drive which allowed faster resumption of economic activities. -
REVENUE20212020PRECAST(RM' MILLION)122.9Precast SegmentRevenue recorded for the current year improved compared to previous year as previous year was affected more severely by both the MCO in Malaysia and Circuit Breaker in Singapore.
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GROSS PROFIT MARGIN20212020CONSTRUCTION19.4%Construction SegmentGross profit for current year ended was much higher due to re-calibration of margin to reflect some upside as some projects were nearing completion and certainty of better margins were more visible.
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GROSS PROFIT MARGIN20212020PRECAST-5.1%
Precast SegmentGross profit for current year ended was slightly lower as this segment was impacted from the increase in steel bar prices. -
PROFIT BEFORE TAX20212020CONSTRUCTIONTOTAL36.8%Construction SegmentThis higher PBT margin this current year ended is in tandem with the reported improvement in gross profit even though there was an increase in administrative expenses compared to previous financial year due to normalisation of expenses.
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PROFIT BEFORE TAX20212020PRECASTTOTALNILPrecast SegmentPrecast profit before tax was maintained at 2.8% in current financial year despite the impact of steel bar prices, and normalisation of expenses as previous financial year was affected more severely by both the MCO in Malaysia and Circuit Breaker in Singapore.
