Sunway Q4 profit up 10.52% to RM200.31mil

  • Corporate News
  • Wednesday, 26 Feb 2020

PETALING JAYA: Sunway Bhd saw its net profit for the fourth quarter ended Dec 31,2019 rise 10.52% year-on-year to RM200.31mil.

Revenue for the quarter was slightly lower at RM1.35bil from RM1.45bil in the same quarter a year ago.

Sunway said in a filing with Bursa Malaysia that revenue was lower in the fourth quarter due to reduced contributions from most business segments except for property development, quarry and healthcare.

“Pre-tax profit was higher mainly due to improved contributions from property development, quarry and property investment.

“It should be noted that the company’s pre-tax profit is being impacted by the adoption of MFRS 15 on one of the Singapore and China property development projects, for which we can only recognise the development profits upon its completion, ” it said.

“The full recognition of the balance of the development profit of about RM160mil for the projects will be done upon vacant possession delivery in 2020, ” it added.

Sunway has also declared a second interim cash dividend of 4.5 sen per share, which the board had determined that the Dividend Reinvestment Scheme (DRS) will apply to the entire portion of the second interim dividend.

It said that under the DRS, shareholders would be given the option to elect to reinvest the whole or part of the dividend into new shares of the company.

It said total full-year dividends is at about 9.07 sen per share, up from 7.12 sen per share in 2018.

Meanwhile, Sunway said in a statement that it has identified healthcare as one of its upcoming segments and planned to build six more hospitals in Malaysia, mainly within the company’s integrated townships.

It recently opened the 240-bed Sunway Medical Centre Velocity in Sept 2019 in Cheras, Kuala Lumpur, offering multi-disciplinary medical services.

It had also launched the Sunway Traditional and Complementary Medicine Centre that is aimed at integrating the knowledge and expertise of western and traditional medicine.

Sunway said it planned to expand into assisted living and aged care in the near future.

Its healthcare segment reported revenue of RM162.9mil and pre-tax profit of RM11.4mil in the quarter under review compared to a revenue of RM132.8mil and pre-tax profit of RM16.9mil in the same quarter a year ago.

This represents an increase in revenue of 22.7% and a decrease in pre-tax profit of 32.8%.

“The revenue in the current quarter was higher primarily due to improved occupancy from increased number of new beds and higher admissions and outpatient treatments, ” it said.

It noted that its strong performance from Sunway Medical Centre was partly offset by the operating loss from the newly opened Sunway Medical Centre Velocity, which amounted to RM11.7mil in the current quarter.

The property development segment reported revenue of RM218.2mil and pre-tax profit of RM117.2mil in the current quarter compared to revenue of RM203.8mil and pre-tax profit of RM51mil in the corresponding quarter of the previous financial year, which represents an increase in revenue of 7% and pre-tax profit of 129.8%.

Revenue was higher due to improved and progress billings from local development projects, it said.

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