Sunway books RM203 mil net profit in 4Q, declares 3.5 sen dividend

• The most notable jump was recorded by the group’s property development segment, whose revenue leapt 140.39% to RM442.65 million from RM184.14 million previously, due to the completion and handover of a local development project and revenue recognition from three subsidiaries — Sunway Artessa Sdn Bhd, Sunway Velocity Two Sdn Bhd and Daksina Harta Sdn Bhd — which were previously joint venture companies.

KUALA LUMPUR (Feb 23): Sunway Bhd posted a net profit of RM202.98 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), with all business segments recording higher profits except construction, trading and manufacturing, and others segments.

In 4QFY2021, Sunway booked a net profit of RM2.45 billion, inclusive of a RM2.3 billion net gain arising from the group's partial divestment of Sunway Healthcare Group.

Quarterly revenue increased 22.83% to RM1.53 billion from RM1.25 billion in 4QFY2021, carried by higher contributions from its business divisions bar minor dips from its construction and others segments, the group said in a Bursa Malaysia filing.

The most notable jump was recorded by the group’s property development segment, whose revenue leapt 140.39% to RM442.65 million from RM184.14 million previously, due to the completion and handover of a local development project and revenue recognition from three subsidiaries — Sunway Artessa Sdn Bhd, Sunway Velocity Two Sdn Bhd and Daksina Harta Sdn Bhd — which were previously joint venture companies.

The strong recovery of its leisure and hospitality business resulted in the group’s property investment segment logging a revenue of RM230.66 million, 72.95% higher than the RM133.37 million achieved in 4QFY2021.

The group's trading and manufacturing, and quarry segments also posted higher year-on-year revenue contributions.

Sunway declared a second interim dividend of 3.5 sen per share, with the payment date to be announced later.

For the full financial year, Sunway’s net profit — excluding the RM2.37 billion recognised last year as net gain arising from the partial divestment of Sunway Healthcare Group — surged 130.56% to RM676.69 million from RM293.5 million in FY2021, on higher revenue.

Full-year revenue rose 39.75% to RM5.19 billion versus RM3.72 billion previously, on higher contributions from all business segments.

With Malaysia’s economy expected to grow at a more moderate 4%-5% in 2023 despite the challenging global economic environment, Sunway said it is cautiously optimistic that it can sustain growth momentum going forward.

“In particular, the group expects several of its business segments such as its leisure, hospitality and healthcare businesses to continue to benefit from the improving inbound leisure and medical-related tourism, especially with the reopening of China’s international borders which will boost further tourist arrivals,” the group added.

Shares in Sunway finished two sen or 1.25% higher at RM1.62, giving the group a market capitalisation of RM7.99 billion.