Sunway Construction "Assume coverage with Buy; direct DC proxy" (Buy) Lim

Research evidence excerpt

Sunway Construction "Assume coverage with Buy; direct DC proxy" (Buy) Lim

Global Research

29 June 2026ab

Sunway Construction Equities

MalaysiaAssume coverage with Buy; direct DC proxy

Industrial Services

12-month rating Buy

The biggest beneficiary of the data centre construction theme

We assume coverage of Sunway Construction (SunCon), Malaysia's largest listed pure- 12m price target RM10.00

play contractor, with a Buy rating and RM10 price target. SunCon is our clearest proxy to Prior : RM5.20

Malaysia's data centre (DC) construction cycle, where TNB's 8.3GW secured maximum

Price (26 Jun 2026) RM7.32

demand vs. only 1.05GW actual load utilisation points to a sizeable multi-year runway

for phased campus build-outs and data hall energisation. SunCon has captured an RIC: SCOG.KL BBG: SCGB MK

average 47% share of publicly announced data centre contracts awarded to main

Trading data and key metrics

contractors since 2022 (Figure 2SunConhascapturedthelargestshareofMalaysia'spubliclyanouncedDCmaincontractssince202;dipin2025coincidedwithatemporarygovernanceoverhangfromtheMACinvestigation, Figure 20Publiclyanounceddatacentremaincontractsawardedtolistedcontractors), making it the most successful contractor in

52-wk range RM7.64-5.22

this subsegment to date. Its first-mover advantage matters as clients move on to

subsequent phases, where execution track record, client familiarity and incumbent Market cap. RM9.46b/US$2.32b

status become a tangible advantage. As a result, data centres now account for 64% of Shares o/s 1,293m (ORD)

its order book, up from 32% in 2022, underpinning a 43% core earings CAGR over Free float 16%

2022-25. Avg. daily volume ('000) 3,263

Avg. daily value (m) RM23