Sunsuria's 4Q net profit triples q-o-q to RM9m on further work progress, cost-cutting measures on non-critical expense items

KUALA LUMPUR (Dec 2): Sunsuria Bhd’s net profit for the fourth quarter ended Sept 30, 2020 (4QFY20) surged 227.62% to RM9.21 million or 1.03 sen per share, from RM2.81 million or 0.31 sen per share in the immediate preceding quarter, due to the almost two-fold increase in percentage of work done and the group’s various cost-cutting measures implemented on non-critical expense items.

The group said in a statement that its revenue for 4QFY20 also jumped 203.43% quarter-on-quarter (q-o-q) to RM61.3 million from RM20.2 million, underpinned by higher sales recorded in the current quarter.

On a yearly basis, however, the group’s net profit fell 52.33% from RM19.72 million or 2.34 sen per share a year ago, while its revenue decreased by 41.51% from RM104.81 million.

The group said the difference in its 4Q revenue and net profit was due to higher work completion upon the issuance of the certificate of completion and compliance for The Olive and Monet Lily at Sunsuria City in the previous year’s corresponding quarter, which contributed to 56% of 4QFY19 revenue.

For the full year ended Sept 30, 2020, the group’s net profit slumped 77.73% to RM30.17 million or 3.37 sen per share, from RM135.47 million or 16.08 sen per share a year earlier. Its revenue dropped by 63.11% to RM197.08 million from RM534.26 million.

The group said this financial year's performance was adversely affected by various levels of the movement control order (MCO) in Malaysia.

In addition, the previous financial year's results included a one-off revenue and gross profit contribution of RM149.36 million and RM95.47 million respectively from Sunsuria’s Jasper Square commercial development upon its completion in February 2019.

Sunsuria’s executive chairman Tan Sri Ter Leong Yap said the uptick in sales and increase in the amount of work done in the current quarter is encouraging for the group, as it is a reflection of the group adapting well to the new normal of the Covid-19 pandemic.

“It has been an unprecedented year with a pandemic-hit economy but with the proposed acquisition for our planned developments — Bangsar Hill Park in Lorong Maarof and Nadi @ TAR in Kuala Lumpur — currently underway, as well as the news of the availability of Covid-19 vaccine, we look forward to brighter prospects in 2021.

“Moving forward, we will continue to play our part in ensuring we consistently deliver products and services with integrity, quality and reliability, as we embrace the new normal,” he said.

Sunsuria in October entered into two agreements to venture into the development of Bangsar Hill Park — a high-rise residential project along Lorong Maarof — and Nadi @ TAR, a high-rise mixed commercial project along Lorong Tuanku Abdul Rahman in Kuala Lumpur.

The proposed Bangsar Hill Park project has an estimated gross development value (GDV) of RM3.01 billion, while Nadi @ TAR has an estimated GDV of RM524.8 million.

At 11.34am, Sunsuria was unchanged at 40 sen, valuing the group at RM358.37 million.

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