Strong performance from business segments lifts Sunway’s 1Q earnings by 140% to RM140 mil

KUALA LUMPUR (May 27): Sunway Bhd’s first quarter net profit ended March 31, 2022 (1QFY22) soared 140% to RM140.11 million from RM58.45 million in the same quarter last year on the back of higher revenue due to stronger operating performance from most business segments, except trading and manufacturing.

As a result, earnings per share rose to 2.39 sen from 1.01 sen previously.

Revenue grew 31.48% to RM1.11 billion from RM846.11 million a year earlier, Sunway’s bourse filing on Thursday (May 26) showed.

Sunway’s property development segment reported a 13.2% year-on-year (yoy) increase in profit before tax (PBT) to RM23.41 million, due to higher progressive profit recognition from its Singapore private condominium projects, which offset lower profit contribution from local development projects.

The property investment segment posted PBT of RM45 million from loss before tax of RM16.96 million in 1QFY21 on higher visitorship to the theme parks and higher occupancy at the group’s hotels.

Meanwhile, PBT for the construction segment increased 72.8% to RM47.8 million on higher progress billings from local construction projects.

The trading and manufacturing segment saw PBT drop 15.8% to 10.3 million in the current quarter compared with RM12.2 million in the previous corresponding quarter of the previous financial year, mainly due to lower contribution from the China market which was impacted by Covid-19 lockdowns.

In a separate statement, Sunway Group chief financial officer Chong Chang Choong said the group is actively managing downside risks to the recovery due to rising inflationary expectations caused by the on-going supply chain disruptions and geopolitical conflicts.

“The group is optimistic that the financial performance for the remaining period of 2022 will be satisfactory,” he added.

Sunway shares closed at RM1.74 on Thursday, up one sen or 0.58%. At RM1.74, the group has a market value of RM8.59 billion.

Edited by Jenny Ng

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