Broker: Maybank Investment Bank Berhad
Date of Report: April 16, 2026
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Stock: Sunway Construction Group (SCGB MK)
- Action: Upgrade to BUY from HOLD
- Target Price: MYR 7.83 (previous: MYR 5.63; +39%)
- Key Idea: SCGB is targeting a record MYR 6.0b job wins in FY26E, with >80% expected from fast-executing data centre projects. Margin pressure from rising material costs is anticipated but partly offset by bad debt recovery, cost savings, and partial cost pass-throughs.
- Earnings Revision: FY26E and FY27E core net profit raised by 29% and 19%, respectively, on faster job execution and improved margins. FY28E core net profit introduced (+1% YoY).
- Valuation: Target price based on 24x FY27E P/E, reflecting the full earnings impact of new job wins.
- Dividend: SCGB employs a 100% dividend payout ratio, offering yields of ≥4.0% p.a.
- Implication: Investors can take action on this upgraded BUY call with a higher target price, reflecting robust orderbook driven by data centre projects and strong earnings growth potential.
above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : https://www.maybank.com/investment-banking
