SunCon’s business operations are primarily located in Malaysia as well as in Singapore and India. Aside from its projects in Malaysia, SunCon operates an Integrated Construction and Prefabrication Hub (ICPH) in Singapore and is presently undertaking several highway construction jobs in India.
SUNCON AT A GLANCE
More than
0 years
of excellence
Leading
vertically integrated
contractor listed
on Bursa Malaysia
3precast plants at
0 m3
capacity
Turnover
recorded to-date
> RM0 billion
Invested in
Virtual Design and
Construction
since 2010
SunCon delivered another year of
exceptional performance in FY2023,
surging ahead towards new horizons of
greater growth and value creation.
Despite operating amidst sluggish economic conditions hampered by rising inflation, geopolitical tensions and post pandemic impacts, SunCon successfully delivered a record-high revenue of RM2.7 billion, profit before tax (PBT) profit of RM189 million and exceeded our order book replenishment target with RM2.5 billion in new orders secured.
SunCon’s vertically integrated construction approach enabled by Virtual Design and Construction (VDC) has propelled the Group to the forefront of the construction landscape, setting new standards of innovation and excellence.
Our building construction services division specialises in the design and construction of special purpose buildings with a proven track record in constructing buildings that have become national landmarks such as the Kuala Lumpur Convention Centre, Traders Hotel, Petronas New Leadership Centre, TNB Headquarters Campus Phase 2, Pinewood Iskandar Malaysia Studio, Legoland Malaysia Theme Park, and Government Buildings in Putrajaya, amongst others. We have also completed several projects overseas in the past years.
The civil and infrastructure division specialises in civil and rail infrastructure services and has vast experience in various roads, highways, airports and runways, bridges and rail transportation infrastructure projects over the last 40 years.
SunCon has expertise in foundation and geotechnical engineering works including piling, large diameter bored piles, diaphragm wall construction, deep basement construction, top down construction and ancillary work. We also own a fleet of machines which enables us to provide integrated geotechnical solutions for a wide range of building projects, from residential projects to large scale developments, as well as civil and infrastructure works.
SunCon provides mechanical, electrical and plumbing (MEP) services, and specialised engineering solutions as a fully integrated construction services business. The modus operandi for our mechanical, electrical and plumbing service is very much to complement the projects under the building construction and civil infrastructure service division in achieving the Green Building Index (GBI) as planned by our clients.
We provide sustainable energy solutions ranging from district cooling plants to renewable energy services such as large scale solar farms, and rooftop solar solutions for commercial and industrial buildings, as part of our commitment to reduce the carbon footprint.
We develop, design, manufacture and supply precast concrete products with manufacturing plants located in Iskandar and Senai in Johor, Malaysia and an Integrated Construction and Prefabrication Hub (ICPH) in Singapore.
We are among the first to be awarded the license to produce Prefabricated Bathroom Units (PBU) and obtained the license to produce Prefabricated Prefinished Volumetric Construction (PPVC).
Our building construction services division specialises in the design and construction of special purpose buildings with a proven track record in constructing buildings that have become national landmarks such as the Kuala Lumpur Convention Centre, Traders Hotel, Petronas New Leadership Centre, TNB Headquarters Campus Phase 2, Pinewood Iskandar Malaysia Studio, Legoland Malaysia Theme Park, and Government Buildings in Putrajaya, amongst others. We have also completed several projects overseas in the past years.
The civil and infrastructure division specialises in civil and rail infrastructure services and has vast experience in various roads, highways, airports and runways, bridges and rail transportation infrastructure projects over the last 40 years.
SunCon has expertise in foundation and geotechnical engineering works including piling, large diameter bored piles, diaphragm wall construction, deep basement construction, top down construction and ancillary work. We also own a fleet of machines which enables us to provide integrated geotechnical solutions for a wide range of building projects, from residential projects to large scale developments, as well as civil and infrastructure works.
SunCon provides mechanical, electrical and plumbing (MEP) services, and specialised engineering solutions as a fully integrated construction services business. The modus operandi for our mechanical, electrical and plumbing service is very much to complement the projects under the building construction and civil infrastructure service division in achieving the Green Building Index (GBI) as planned by our clients.
We provide sustainable energy solutions ranging from district cooling plants to renewable energy services such as large scale solar farms, and rooftop solar solutions for commercial and industrial buildings, as part of our commitment to reduce the carbon footprint.
We develop, design, manufacture and supply precast concrete products with manufacturing plants located in Iskandar and Senai in Johor, Malaysia and an Integrated Construction and Prefabrication Hub (ICPH) in Singapore.
We are among the first to be awarded the license to produce Prefabricated Bathroom Units (PBU) and obtained the license to produce Prefabricated Prefinished Volumetric Construction (PPVC).
Revenue improved in the current financial year due to the peak progress contribution from projects in India, as well as a higher contribution in sustainable energy projects.
Precast Segment
REVENUE
0%
FY2023
RM0 million
FY2022
RM0 million
The revenue recorded for the current year has improved compared to the previous year due to the commencement of the Integrated Construction and Prefabrication Hub (ICPH) plant, which has increased production capacity. Furthermore, new projects contributed about 12% of turnover to the segment.
Construction Segment
GROSS PROFIT MARGIN
0%
FY2023
0%
FY2022
0%
Gross profit margin for the previous year was significantly higher due to the finalisation
of accounts for completed projects.
Precast Segment
GROSS PROFIT MARGIN
0%
FY2023
0%
FY2022
0%
Gross profit margin for the current year increased in tandem with the increase in revenue. Additionally, there was a reversal of provisions on raw materials for completed projects.
Construction Segment
profit before tax
0.0%
FY2023
0 million (7.1%)
FY2022
0 million (8.8%)
The lower profit before tax in financial year 2023 due to lower gross profit margin and higher administrative expenses, which increased by 21% as compared to the previous financial year.
Precast Segment
profit before tax
0%
FY2023
0 million (6.5%)
FY2022
RM0 million (5.9%)
Precast profit before tax has improved in current financial year in line with the higher gross
profit margin and revenue.
The pool of funds available to
SunCon, generated from operations,
investments and debt arrangements.
MANUFACTURED
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
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
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
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
The pursuit of resource efficiency in the consumption of natural resources and materials required for the business model.
FINANCIAL
Beginning of FY2023
Share capital: RM258.6 million
Retained profits: RM515.9 million
Cash and bank balances: RM491.6 million
Market capitalisation: RM2.017 billion
MANUFACTURED
A wide range of plant and machineries
2 precast plants
1 ICPH in Singapore
INTELLECTUAL
SunCon’s business model
Divisional business strategies
Intellectual property and proprietary business / industry knowledge ie. Virtual Design and Construction, building management systems, software
HUMAN
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
1,057 strong workforce (excluding direct workers)
SOCIAL
Financial and non-financial investments into stakeholder engagements including engagement strategies, programmes and activities
Conducted 10 sessions in outreach programmes, participated by 1,500 university students
113 internship opportunities provided to young graduates
CSR budget and expenditure on community infrastructure and services, community events
NATURAL
Energy consumed 37,406 MWh
Consumed 357 MWh solar energy
340,082 m3 of water consumption (Alternate water source: 12.3%)
RM8.09 million in solar investment projects
Established Carbon Reduction Policy
FINANCIAL
Revenue: RM2,671 million
PBT: RM188.6 million
PAT: RM145.8 million
Cash and bank balances: RM470.4 million
MANUFACTURED
RM2.67 billion in projects progress for FY2023
Average QLASSIC score: 82.3% (vs industry average 76%)
Total 437 km of highways and 40.5 km of rail and mass transit projects constructed to date
INTELLECTUAL
Improved communication channels via Autodesk Construction Cloud (ACC) platform
296 staff trained and developed with VDC competencies in FY2023 (FY2022: 425)
60% of planners trained with 4D skills
HUMAN
34 project leaders across 6 core businesses
54 VDC experts, and more than 50% operationally trained with VDC knowledge
16.9x staff productivity
SOCIAL
Improved stakeholder relationships
64% buy calls from analysts and research houses
Customer Satisfaction Score: 100%
Zero fines for labour law non-compliance
Average SHASSIC score 89% (vs industry average of 86.81% in 2023)
Engaged 78% of active suppliers and subcontractors in inaugural SunCon Supply Chain Social
9 awards & recognitions received
NATURAL
Zero reported fines for environmental non-compliance
Generated green attributes of 3,305 tonnes CO2e avoidance from our solar investments
Expand ESG monitoring coverage to include emissions at workers accommodation and employee commuting
FINANCIAL
53% dividend payout of PAT after minority interests
RM42.8 million paid in income taxes
RM159.0 million paid in wages
Market capitalisation: RM2.508 billion as at end FY2023
High Return on Equity (FY2023: 17%; FY2022: 18%; FY2021: 17%) - Best ROE for 5 consecutive years in the Construction Sector awarded by The Edge Billion Ringgit Club
MANUFACTURED
A wide range of socio-economic multiplier effects arising from the successful completion of building and infrastructure projects
Elevation of industry standards and benchmarks
INTELLECTUAL
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
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
Zero accidents involving the community or general public
Development of talent pool that supports SunCon’s human capital requirements
Contribution of more than RM2.63 million through the Jeffrey Cheah Foundation as well as various community and SunCon Social Club (SSC) initiatives
NATURAL
Improved environmental oversight and implementation of practices with progressive integration of ESG into the Group’s business strategies and its operations
On track in meeting SunCon’s 2030 emission reduction targets
The annual Sustainability Statement of Sunway Construction Group Berhad (SunCon) for the financial year from
1 January 2023 to 31 December 2023 (FY2023) serves to provide a comprehensive account of SunCon's progress in driving our Environmental, Social, and Governance (ESG) agenda. This year's report continues to build upon our steadfast commitment to improving our ESG key performance indicators (KPIs) towards the attainment of our set targets.
(Please refer to www.sunwayconstruction.com.my/investor-relations/ under ‘AGM’ section)
1st
We aim to mitigate our environmental and social impacts,
reinforcing our role as a responsible corporate entity
in the global fight against climate change, pollution, and
human rights issues, including labour rights.
2nd
Our goal is to minimise business and operational risks,
uncover areas for improvement, and thereby
foster sustainable business and
operational enhancement.
