KUALA LUMPUR, Aug 24 — Property developer, Sunway Bhd posted a lower net profit of RM149.93 million for its second quarter ended June 30, 2023 (2Q 2023) as compared with RM161.49 million in 2Q 2022, due to lower profit contribution from property investment and other segments.
In a filing with Bursa Malaysia, it said revenue in 2Q 2023 rose 14.7 per cent to RM1.47 billion from RM1.28 billion in 2Q 2022, due to higher contribution from most business segments except from trading and manufacturing and quarry segments.
It said the property development profit from two of the Group’s ongoing property development projects in Singapore will only be recognised upon completion and handover of the projects, in 3Q 2023 and by the end of the first quarter of the 2024 financial year, respectively.
As of end-June 2023, the accumulated progressive profits related to these projects amounted to RM131 million, said Sunway.
For the first six months period, net profit stood at RM291.57 million versus RM298.00 million in the preceding year corresponding period, while revenue increased to RM2.73 billion from RM2.39 billion before.
“We are pleased that the group continues to deliver strong financial performance in 2Q 2023. The healthcare segment will continue to be one of the group’s main growth drivers as the three existing hospitals continue to register strong growth,” said president Tan Sri Chew Chee Kin.
He said the group’s pipeline of several new hospitals coming on stream in the next few years would provide future earnings growth.
“In addition, the group expects its leisure, hospitality, and healthcare segments to benefit from further improvement in in-bound leisure and medical-related tourism in the second half of this year from increased international arrivals.”
For the longer term, Sunway is looking forward to the completion of the Rapid Transit System (RTS) rail link between Johor and Singapore in 2026, and the potential establishment of the Johor-Singapore Special Economic Zone, which will substantially improve the cross-border movement of people and goods, he said.
“Such developments will augur well for Sunway City Iskandar Puteri, the group’s flagship township development which is strategically located between Puteri Harbour and the Second Link to Singapore.”
The company has declared a single-tier first interim cash dividend of 2.00 sen per ordinary share and a preferential dividend of 5.25 per cent per annum (based on the issue price of RM1.00) per irredeemable convertible preference share in respect of the financial period from January 1, 2023 to June 30, 2023. — Bernama
