Betting on Malaysia’s Big Build: Is Muhibbah or SunCon the Smarter Play?

Case Notes 46: In this article, I examine how 2 Bursa construction companies have evolved to meet the changing market environment.    

After a long period of disruption from the pandemic and cost inflation, Malaysia’s civil and infrastructure construction sector is stirring back to life. Government mega-projects are rebooting. Green infrastructure is gaining traction. And listed players are fighting to reclaim relevance in a more complex, ESG-driven world.

But not all construction companies are created equal.

This article takes you inside the sector’s structural shift — and spotlights two contrasting mid-cap contenders: Muhibbah Engineering and Sunway Construction (SunCon).

One is quietly turning the corner. Years of underperformance and concession drag are being replaced by operating discipline and a sharper capital structure. Margins are recovering. Efficiency is improving. It is not glamorous - but it might just be a stealth turnaround.

The other is going full throttle into sustainability - smart energy, circular design, and digitalisation. Revenue is growing. The ESG narrative is compelling. But capital returns are under pressure. For now, it’s an investment in future promise, not present cash flow.

Both companies reflect the sector’s transformation - but their risk-reward profiles couldn’t be more different.

• Want to see the financial scorecards?

• Curious who’s actually creating shareholder value?

This article dives into the numbers, operating performance, and business model — but if you want the valuation and verdict, you will need the password.

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If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play. 

Disclaimer & Disclosure

I am not an investment adviser, security analyst, or stockbroker.  The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies.   Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them. 

The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such. 

I may have equity interests in some of the companies featured.

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.

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