Sunsuria 2Q net profit surges over fivefold on strong sales

KUALA LUMPUR (May 24): Property developer Sunsuria Bhd's net profit for the second financial quarter ended March 31, 2017 (2QFY17) surged more than fivefold to RM18 million or 2.25 sen a share, from RM3.15 million or 0.43 sen per share on the back of strong sales.

Revenue for 2QFY17 almost tripled to RM103.68 million from RM38.82 million a year earlier, as a result of contribution from the group's developments such as Suria Residence at Bukit Jelutong, The Forum 1 at Setia Alam, and the group's flagship projects at Sunsuria City in Sepang, which contributed 45% of the revenue.

For the first half of FY17 (1HFY17), the group's net profit more than doubled to RM28.64 million, from RM12.56 million a year ago.

According to its bourse filing, 1HFY17 revenue nearly tripled to RM167.48 million compared to RM56.33 million in 1HFY16.

The group has five ongoing developments as at 1HFY17 which carry a combined gross development value of RM1.19 billion. These projects are Suria Residence, The Forum 1, as well as Bell Avenue, Jasper Square and The Olive in Sunsuria City.

Sunsuria chief executive officer Koong Wai Seng said the group remains optimistic of strong growth despite the subdued property market outlook.

"As our financial results show, we are growing from strength to strength by providing innovative solutions that the market demands and tapping into collaborations that help enhance margins in other subsectors such as ancillary construction work.

"With the right product mix at the right locations, there will be continuing demand for real estate assets," he said.

He added the group has more products lined up for the year, which will be launched in the upcoming months.

"All in all, we expect 2017 to be another year of continued financial growth," said Koong.

Last month, Sunsuria acquired a 51% stake in construction company Prosperspan Construction Sdn Bhd, which is now known as Sunsuria Asas Sdn Bhd, in a move to expand into the construction business.

At the closing bell today, Sunsuria shares were unchanged at RM1.41 and for a market capitalisation of RM798 million. Year to date, its shares have delivered a return of 42%, from its closing price of 99 sen on Dec 30 last year. — theedgemarkets.com

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