SunCon At A Glance
Construction projects in
SEVEN COUNTRIES
LEADING
vertically integrated contractor listed on Bursa Malaysia
3 precast plants at
Turnover recorded
to-date
BILLION
Invested in Virtual Design & Construction since 2010
MILLION
Chairman’s Statement
DEAR ESTEEMED STAKEHOLDERS,
On behalf of the Board of Directors of Sunway Construction Group Berhad (SunCon), I am pleased to present the Integrated Annual Report 2024 and audited financial statements for the financial year ended 31 December 2024 (FY2024).
Despite facing a challenging global and domestic economic environment, we have successfully navigated through this period, showcasing our resilience to deliver a solid performance that further position us for sustainable growth.
Hence, I am honoured to share an overview of our progress during FY2024 and the strategic direction we are pursuing for the future.
DATO' IR GOH CHYE KOON
Delivering Shareholder Value Creation
Management Discussion
and Analysis
BUILDING CONSTRUCTION SERVICES
2 projects completed in 2024
million
With an established track record for operational excellence spanning across four decades, SunCon’s Building Construction Services division continues to emerge as an innovative and capable industry leader. The division’s project portfolio consists of national landmarks such as the Kuala Lumpur Convention Centre, Petronas New Leadership Centre, TNB Headquarters Campus Phase 2 and Legoland Malaysia Theme Park amongst others.
CIVIL AND INFRASTRUCTURE SERVICES
Highway Projects
billion
Rail & Mass Transit Projects
billion
The Civil and Infrastructure division specialises in civil and rail infrastructure construction and related services. The division possesses a track record spanning four decades having designed and successfully completed roads, highways, airports, runways, bridges and rail transportation project in Malaysia and abroad.
MECHANICAL, ELECTRICAL AND PLUMBING & ADVANCED TECHNOLOGY FACILITIES
3 new and 2 variation orders data centre projects secured in 2024
billion
SunCon provides mechanical, electrical and plumbing (MEP) services alongside advanced technology facilities (ATF) as part of its fully integrated construction services. These services are provided by the Group’s MEP division.
MANUFACTURING AND SALE OF PRECAST CONCRETE PRODUCTS
million
million
In 2024, the Precast Division faced rising inflation that contributed to increased costs of imported materials such as cement and steel. Other challenges encountered included stiff market competition, global supply chain disruptions and high labour costs in Singapore. Tight foreign labour policies (which restricted access to manual labour) in Singapore was also a dampening factor.
SUSTAINABLE ENERGY SERVICES
EPCC and Investment
MWp
EPCC District Cooling System
RT
As part of SunCon’s commitment and contribution to national decarbonisation and energy efficiency, the Group provides a wide range of integrated solutions ranging from district cooling plants to renewable energy services including large-scale solar farms, and rooftop solutions for commercial and industrial buildings.
FOUNDATION AND GEOTECHNICAL ENGINEERING SERVICES
1 project completed in 2024
million
Through its Foundation And Geotechnical Engineering Services division, SunCon provides specialised expertise for foundation and geotechnical engineering works. This includes piling, large-diameter bored piles, diaphragm wall construction, deep basement excavation, top-down construction and related ancillary services. The division primarily supports the building and civil infrastructure projects secured by SunCon.
Financial Performance
Construction Segment
REVENUE (RM’000)
FY2024
FY2023
The increase in turnover for the FY2024 was driven by accelerated progress in several data centre projects couple with some projects reached their peak construction phases.
Precast Segment
REVENUE (RM’000)
FY2024
FY2023
The turnover was lower in FY2024 due to a staggered delivery schedule for newly secured projects. Most of these projects, secured in FY2023, will begin delivery in FY2025 and beyond, once the construction sites are ready to receive them.
Construction Segment
GROSS PROFIT MARGIN
FY2024
FY2023
Precast Segment
GROSS PROFIT MARGIN
FY2024
FY2023
Gross profit for the previous year was higher in tandem with the higher turnover.
Construction Segment
PROFIT BEFORE TAX (RM’000)
FY2024
FY2023
Profit before tax for FY2024 was higher, in line with increased revenue. Despite a lower gross profit margin compared to the previous year, the overall profit margin improved. This was primarily due to the reversal of several impairment allowances for long-outstanding debtors that were successfully cleared during the year. Additionally, interest income realised from the deferred payment scheme contributed to the higher profit margin.
Precast Segment
PROFIT BEFORE TAX (RM’000)
FY2024
FY2023
Precast manage to maintain the profit before tax margin despite lower revenue, primarily due to the reversal of provisions on raw materials for completed projects.
How we create value
Financial Capital
The pool of funds available to SunCon, generated from operations, investments and debt arrangements.
Manufactured Capital
Physical assets owned or leased deployed to execute the business model across the value chain towards the creation of financial and non-financial outputs and outcomes.
Intellectual Capital
All business and operational strategies, collective knowledge, skills, competencies and experience of SunCon, its subsidiaries and associate companies as well as its supply chain.
Human Capital
The collective skills, talents, experience and capabilities of the Group’s talent including talent at subsidiary and associate companies responsible for day-to-day operations.
Social Capital
Comprising the diverse network of relationships and engagements with various stakeholders. The understanding of stakeholders’ needs, concerns and aspirations and the implementation of appropriate engagement strategies.
Natural Capital
The pursuit of resource efficiency in the consumption of natural resources and materials required for the business model.
Financial Capital
Beginning of FY2024
- Share capital: RM258.6 million
- Retained profits: RM590.0 million
- Cash and bank balances: RM470.4 million
- Market capitalisation: RM2.501 billion
Manufactured Capital
- A wide range of plant and machineries
- 2 precast plants
- 1 ICPH in Singapore
Intellectual Capital
- SunCon’s business model
- Divisional business strategies
- Intellectual property and proprietary business / industry knowledge i.e. Virtual Design and Construction, building management systems, software
Human Capital
- High-performance work culture centred on merit, equality and diversity
- Talent focused, cultivating high performing culture HR policies
- Championing adoption of VDC as key technology enabler for all project implementation
- Talent mobilisation across different core businesses within SunCon
- 1,148 strong workforce (excluding direct workers)
Social Capital
- Financial and non-financial investments into stakeholder engagements including engagement strategies, programmes and activities
- Conducted 16 sessions in outreach programmes, participated by 1,500 university students
- 160 internship opportunities provided to young graduates
- CSR budget and expenditure on community infrastructure and services, community events
Natural Capital
- Energy consumed 57,644 MWh
- Consumed 362 MWh solar energy
- 315,095 m3 of water consumption (Alternate water source: 16%)
- RM10.78 million in solar investment projects
- Established SunCon Sustainability Policy
Financial Capital
- Revenue: RM3,522 million
- PBT: RM273.0 million
- PAT : RM197.0 million
- Cash and bank balances: RM1,015.8 million
Manufactured Capital
- RM3.52 billion in projects progress for FY2024
- Average QLASSIC score FY2024: 84% (vs industry average 78%)
- Total 437 km of highways and 40.5 km of rail and mass transit projects constructed to date
Intellectual Capital
- Improved communication channels via Autodesk Construction Cloud (ACC) platform
- 133 staff trained and developed with VDC competencies in FY2024 (FY2023: 113)
- 77% of planners trained with 4D skills
Human Capital
- 46 project leaders across 6 core businesses
- 81 VDC experts, and more than 50% operationally trained with VDC knowledge
- 17.9x staff productivity
Social Capital
- Improved stakeholder relationships
- 50% buy calls from analysts and research houses
- Customer Satisfaction Score: 100%
- Zero fines for labour law non-compliance
- Average SHASSIC score FY2024: 87.46% (vs industry average of 86.81% in 2023)
- Engaged 330 active supply chain partners and subcontractors in the environmental and social assessment
- 7 awards & recognitions received
Natural Capital
- Zero reported fines for environmental non-compliance
- Generated green attributes of 4,402 tonnes CO2e avoidance from our solar investments
- Expand ESG Monitoring coverage to include wastewater discharge
Financial Capital
- 59% dividend payout of PAT after minority interests
- RM75.9 million paid in income taxes
- RM196.5 million paid in wages
- Market capitalisation: RM5.970 billion as at end FY2024
- High Return on Equity (FY2024: 22%; FY2023: 19%; FY2022: 19%)- Best ROE for 6 consecutive years in the Construction Sector awarded by The Edge Billion Ringgit Club
Manufactured Capital
- A wide range of socioeconomic multiplier
effects arising from the successful completion of
building and infrastructure projects - Elevation of industry standards and benchmarks
Intellectual Capital
- Enabling sustainable construction by managing resource consumption and carbon footprint while enhancing the Group’s value proposition
- Continued strengthening of business processes and realisation of key business outcomes, including increases efficiency and productivity
Human Capital
- Talent workforce that are mobile to vertically move across different core businesses
- Strong talent bench strength for key succession planning
- Technology enabled workforce capable of managing advanced technology projects
Social Capital
- Zero accidents involving the community or general public
- Development of talent pool that supports SunCon’s human capital requirements
- Contribution of more than RM2.86 million for total amount invested for external beneficiaries through the Jeffrey Cheah Foundation as well as various community and SunCon Social Club (SSC) initiatives
Natural Capital
- Improved environmental oversight and implementation of practices with progressive integration of ESG into the SunCon’s business strategies and its operations
- On track in meeting SunCon’s 2030 emission reduction targets
Sustainability Statement
SunCon publishes this annual sustainability statement in respect of financial year ended 31 December 2024 (SS2024) to provide readers with a comprehensive account of SunCon’s environmental, social and governance (ESG) performance. This includes performance achieved on material ESG topics as measured against key performance indicators and targets set for the financial year. Details of our key targets and the progress made are elaborated in the respective sections of this Sustainability Statement.
SunCon’s previous sustainability report was published on 30 April 2024, in respect of financial year ended 31 December 2023. SunCon provides disclosures on its ESG performance on an annual basis in accordance to the following sustainability reporting frameworks and standards:
11TH
ANNUAL
GENERAL MEETING
Venue:
Grand Congress, Level 12,
Sunway Resort Hotel,
Persiaran Lagoon, Bandar Sunway,
47500 Subang Jaya,
Selangor Darul Ehsan.
Date:
30 May 2025, Friday
Time:
3.00 p.m.
Contact Us:
Phone: (603) 5639 9696
Fax: (603) 5639 9530
