Kuala LUMPUR: Sunway Construction Group Bhd
’s (SunCon) joint venture with Engie Services Malaysia Sdn Bhd to work on a data centre project is expected to help position the company favourably for more sophisticated projects in the future.
The work could see SunCon eventually upscaling its engineering solutions to gain further benefits in the sector.
TA Research said it is optimistic about the new subcontract for a RM416.8mil mechanical and electrical data-centre system, as the partnership will contribute positively to the companies involved.
With the project, TA Research estimates SunCon’s outstanding order book to have grown to RM7.2bil.
This is equivalent to about 2.7 times its financial year 2023 revenue.
“We reiterate our target price of RM6.15, based on a 26 times 2025 earnings per share and a 3% environmental, social and governance premium given our four-star rating,” the research house said.
It maintained its “buy” call on the counter.
“We continue to like the stock based on its strong position as a contender for mega infrastructure projects,” said the research house.
