The stock rallied nearly 7% on Tuesday after the Malaysian Anti-Corruption Commission (MACC) cleared the group of corporate liability in its probe.
In a bourse filing, the construction group said it received a written confirmation from MACC that its investigations focussed solely on one staff member that it has since fired.
The stock had tumbled nearly 18% after news broke on July 21 that MACC was investigating the employee’s dealings with subcontractors.
SunCon rose as much as 6% or 35 sen to RM6.20 today after it posted impressive second quarter results yesterday.
It closed 4% or 24 sen higher at RM6.09, giving it a market capitalisation of RM8.01 billion. The stock has surged nearly 32% year to date, hitting its all-time high of RM6.27 on June 11, 2025.
SunCon said yesterday its net profit for the second quarter ended June 30 (Q2 FY2025) surged 115.8% to RM83.89 million from RM38.87 million a year ago.
Quarterly revenue jumped 126.8% to RM1.48 billion from RM651.25 million a year earlier, driven by accelerated progress of several data centre projects.
For the first half (H1 FY2025), net profit rose 123.9% to RM159.61 million from RM71.27 million in the same period a year ago. Revenue for the first six months climbed 129.1% to RM2.88 billion from RM1.26 billion.
SunCon said while data centres remained a key focus, it is broadening its exposure to other high-potential segments.
This includes large-scale civil and infrastructure projects such as the Penang LRT, MRT3, Penang International Airport expansion, and renewable energy projects.
The construction company is a subsidiary of Sunway Bhd, which has a 54.55% stake through Sunway Holdings Sdn Bhd.
Four-star rating
TA Securities has restored its ESG rating on SunCon to four stars following MACC’s clarification.
“The recent clarification from MACC, confirming that SunCon and its subsidiaries are not subject to investigation, removes a key overhang.
“This development should help restore investor and client confidence, particularly among stakeholders with strong focus on governance and compliance,” it said in a note today.
The research house expects this “reputational recovery” to support stronger conversion of tender into secured projects.
TA also upgraded the stock to a “hold” from “sell” with a higher target price of RM6.31 from RM5.59 previously.