Despite Sunway Construction Group Bhd's (SunCon) latest project win, MIDF Amanah Investment Bank Bhd (MIDF Research) has reiterated its NEUTRAL rating for SunCon, holding the target price (TP) at RM4.46.

MIDF Research's call reflects SunCon's robust performance and outlook, though it noted that the stock's strong recent price movement, up by 2.3 times, indicates that much of the optimism has already been accounted for.

Recently, SunCon has secured an additional RM265 million in tenant improvement works (TIW) for JHB1X0 data centre project in Sedenak, increasing the total contract value to RM3.5 billion.

With the latest TIW addition, SunCon's outstanding order book has risen to RM7.8 billion, 52.7% of which is comprised of data centre projects.

The company's earnings projections remain steady as the additional TIW falls within SunCon's estimated project replenishments for the year.

With no adjustments to earnings estimates, the TP is pegged to a forecast earnings-per-share for FY25 of 18.6 sen and a price-to-earnings ratio of 24 times, slightly above its five-year average.

Year-to-date, the company has replenished RM3.92 billion in new contracts, showing significant progress towards its 2024 target of RM4 billion to RM5 billion.

SunCon's consistent success in securing data centre projects has further solidified its reputation as a leading construction company in Malaysia's technology infrastructure space.

The company is currently pursuing RM13.7 billion in new contracts, reinforcing its commitment to capturing more of the expanding data centre market. This positions SunCon as a prime beneficiary of the ongoing rise in private and civil construction projects within the country.

With a solid order book, a growing presence in the data centre space and a pipeline of potential contracts, SunCon appears well-positioned to capitalise on Malaysia's burgeoning demand for high-tech construction projects, even as its current stock valuation reflects much of this anticipated growth.