KUALA LUMPUR, Aug 24 — Sunway Bhd’s net profit more than doubled to RM168.88 million in the second quarter ended June 30, 2022 (Q2 FY2022) from RM70.52 million a year earlier, supported by stronger operating contributions from most business segments.
Revenue also surged by about two-thirds to RM1.28 billion from RM767.30 million previously due to improved performance from all segments, the group said in a filing with Bursa Malaysia today.
Its property development segment saw only a 12.4 per cent year-on-year (y-o-y) rise in profit before tax (PBT) to RM25.7 million although revenue soared 94.3 per cent to RM286.40 million.
“Due to the adoption of the Malaysian Financial Reporting Standard (MFRS) 15, the development profit from two of the group’s ongoing Singapore property development projects will only be recognised upon completion and handover of the projects,” it explained.
As a result, it added, the accumulated progressive profit related to these projects as at the end of Q2 FY2022 of RM87.5 million, of which RM17.6 million was recorded in the quarter, was not recognised.
Meanwhile, the property investment segment swung to a PBT of RM53.43 million from a loss of RM16.02 million a year earlier, while its construction business’ PBT surged 414.7 per cent y-o-y to RM44.40 million.
Another segment that performed well was healthcare, which recorded a 68 per cent rise in PBT to RM44.71 million.
The group declared a first interim cash dividend of two sen per ordinary share for FY2022 (one sen a year earlier), as well as a preferential dividend of 5.25 per cent per annum (based on the issue price of RM1) per irredeemable convertible preference shares for the first half of FY2022.
For the six-month period, net profit jumped to 140 per cent y-o-y to RM308.99 million on the back of 48.3 per cent higher revenue of RM2.39 billion.
Sunway group chief financial officer Chong Chang Choong said the group’s financial performance continued to strengthen further in the quarter under review, underpinned by the steady recovery of domestic demand as economic activity continued to normalise following the reopening of the economy and international borders.
“The group expects to continue to benefit from the ongoing economic recovery, particularly its leisure and hospitality segments due to improving domestic tourism demand and higher tourist arrivals.
“In addition, the healthcare segment will also benefit from the recovering medical tourism sector as international travels start to normalise,” he said in a statement.
While there may be downside risks to the recovery going forward due to rising inflationary expectations and higher interest rates, Chong said, the domestic economy is expected to be able to weather the headwinds and sustain its growth momentum. — Bernama
