Sunway earnings up 12% in Q4 despite lower revenue

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

PETALING JAYA: Sunway Bhd’s net profit for its fourth quarter ended Dec 31, 2018 increased 12% to RM192.32mil from RM172.64mil in the previous corresponding period, while revenue dropped to RM1.37bil from RM1.63bil a year earlier. 

In a filing with Bursa Malaysia, Sunway said revenue was lower due to lesser contributions from the property development, property investment and construction segments.

“Pre-tax profit would have been higher by 4% compared with the corresponding quarter of the previous financial year if not for the adoption of MFRS 15 accounting standards on one of the group’s Singapore and China property development projects, for which the group can only recognise the development profits upon completion,” it said.

For the financial year ended Dec 31, 2018, the group’s net profit grew to RM658.99mil from RM620.59mil in the previous corresponding period while revenue increased to RM5.41bil from RM5.24bil a year earlier.

Going forward, Sunway said it expected to continue performing satisfactorily in 2019, barring any unforeseen circumstances.

“The group continued to perform well, registering a group profit after tax and minority interests (patmi) of RM659mil for the current 12-month period compared with RM620.6mil in the corresponding period of last year, representing an increase of 6.2%.

“The group’s patmi would have been higher by 22.9% in the current period compared with the previous corresponding period if not for the adoption of MFRS 15,” it said.