KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has secured a RM720.99 million contract for a shopping mall project located in Kinta, Perak.

The contract was awarded to Sunway Construction Sdn Bhd (SCSB), a wholly-owned subsidiary of SunCon, by Sunway Bhd’s indirect subsidiary, Sunway Lost World Water Park Sdn Bhd, according to a stock exchange filing today.

The scope of the contract entails the execution of earthworks and main building works for a commercial development project, which encompasses a six-storey mall, cinema, shops and carparks across 19.47 acres.

Commencing on March 1, the project is slated for completion by January 31, 2027.

SunCon disclosed that this transaction is deemed a related party transaction due to Evan Cheah Yean Shin’s affiliations.

Cheah, the son of Tan Sri Jeffrey Cheah, the founder of Sunway holds directorial and major shareholder positions within SunCon and various subsidiaries of the Sunway group, aligning with his significant stakes in both entities.

He has a direct stake of 0.001 per cent and an indirect stake of 66.04 per cent in SunCon.

Additionally, he possesses a 0.09 per cent direct stake and a 64.72 per cent indirect stake in Sunway.

SunCon said this latest contract win bolsters the company’s secured projects for the year, amounting to RM831 million.

While acknowledging the inherent construction risks such as material price fluctuations, SunCon expressed confidence in mitigating these risks leveraging the experience and expertise of SCSB in handling construction projects.

Furthermore, SunCon anticipates a positive contribution to its earnings from this project starting from the financial year ending December 31, 2024 (FY2024) onwards.

Sunway’s revenue climbed 23.94 per cent to RM2.67 billion from RM2.16 billion in the fiscal year 2023, while net profit improved 7.34 per cent to RM145.1 million from RM135.18 million in the previous year.