INTEGRATED REPORT 2020
© 2021 Sunway Construction Group Berhad
(Company No: 201401032422 (1108506-W)). All Rights Reserved.
Dear Shareholders,
In a year which saw mounting challenges in the wider Malaysian construction industry, we increased our resolve to respond to the unprecedented challenges brought about by the COVID-19 pandemic.
DATO’ IR GOH CHYE KOON
Chairman Of Sunway Construction Group Bhd
SunCon’s operations are typically funded on internally generated funds and a portion of well-adjusted debt. We have a robust capital management system in place to maintain a stable financial position.
SunCon owns a number of plants and a wide range of machineries. We have two Precast plants in Johor and RM73 million worth of machineries. We are currently developing an advanced precast manufacturing facility in Singapore to mechanise the production of precast components (ICPH).
Our community spans across all age groups with diverse technical knowledge and capabilities. Cultivating lean and synergistic teams and creating an engaging, empowering and energising work environment remain key areas of focus for SunCon.
Building Information Modeling (BIM) Technology coupled with Integrated Project Delivery enables better coordination throughout the entire construction lifecycle. We leverage on digital technology to enhance efficiency and enable business transformation.
SunCon utilises water, energy and raw materials in the form of cement, sand, steel and construction aggregates in our business operations. We seek to manage and utilise resources, as well as carry out our business operations in a responsible manner that reduces the impact to the environment.
• ISO 14001 & ISO 45001 certified
SunCon engages and maintains strong relationships with our key stakeholders, namely clients, business partners, professional bodies and local communities where we build.
Market Capitalisation: RM2,431 million
New Order Book: RM2,334 million
Return on Capital Employed: RM12%
Accident statistics: 2 fatal accidents
SHASSIC score:
5 Star - 4 projects
4 Star - 2 projects
Environmental Compounds and Fines: Nil
Staff Productivity: 13 times
Attrition Rate: 13.1%
Employee Engagement Score: N/A*
Customer Satisfaction Score: 96.1%
Average QLASSIC Score: N/A*
Awarded 2 highway projects in Tamil Nadu, India.
Signed a Memorandum of Understanding (MoU) with ENGIE South East Asia.
Lower revenue for financial year 2020 was solely attributed to more than 2.5 months of non activity during MCO period (18 Mar 2020 to 31 May 2020) due to COVID-19 pandemic.
Lower revenue for financial year 2020 due to COVID-19 pandemic which saw our operations hampered due to inability to operate for most of 2nd quarter of 2020. In addition, we were operating at less than 50% efficiency in 3rd quarter 2020 as Singapore’s Ministry of Manpower only allowed gradual reopening of projects in Singapore.
The construction segment gross profit margin saw a decline for financial year 2020 as some projects secured were at a thinner margin due to the competitive landscape of the construction industry.
The precast segment gross profit margin for the financial year 2020 was comparable to that reported in 2019 due to recognition of better yielding margin projects despite having to cover fixed overhead that the segment had to bear with during the COVID-19 pandemic Circuit Breaker in Singapore and MCO in Malaysia.
The lower profit in financial year 2020 is in line with lower gross profit margin and turnover. Profit was also supported by the overall 25% reduction in administration expense.
Profit maintained at RM2.7 million for both financial year ended 2020 and 2019 despite lower turnover due to lower staff cost from COVID-19 support grant and lower bonus in addition to lower management fees.
