Healthcare segment to steer growth for Sunway

Sunway said its healthcare segment will continue to be one of the group’s main growth drivers.

PETALING JAYA: Sunway Bhd is confident that most of its business units will be able to manage the headwinds and continue to perform satisfactorily.

In a filing with Bursa Malaysia, Sunway said its healthcare segment will continue to be one of the group’s main growth drivers, as the three existing hospitals continue to register strong growth.

“Its pipeline of several new hospitals coming on stream in the next few years will provide future earnings growth.

“In addition, the group expects its leisure, hospitality and healthcare segments to benefit from further improvement in in-bound leisure and medical-related tourism in the second half of this year from increased international arrivals.”

For its second quarter ended June 30, 2023, Sunway’s net profit stood at RM149.93mil, compared with RM161.49mil in the previous corresponding period, while revenue in the second quarter rose to RM1.47bil from RM1.28bil a year earlier.

Basic earnings per share was at 2.54 sen versus 2.75 sen previously.

Sunway said its revenue was higher in the current quarter mainly due to higher contribution from most business segments, except from trading and manufacturing and quarry segments.

“However, pre-tax profit in the current quarter was marginally lower due to lower profit contribution from property investment and other segments.”

Sunway noted that due to the Malaysian Financial Reporting Standard, the development profit from two of its on-going Singapore property development projects will only be recognised upon completion and handover of the projects.

“As a result, the accumulated progressive profit related to these projects as at the end of the current quarter of RM131.1mil, of which RM9.5mil was recorded in the current quarter, was not recognised.

For the six-month period ended June 30, 2023, Sunway’s net profit stood at RM291.57mil compared with RM298mil a year earlier, while revenue improved to RM2.73bil from RM2.39bil previously.

Sunway declared a single-tier first interim cash dividend of two sen per ordinary share and a preferential dividend of 5.25% per annum per irredeemable convertible preference share in respect of the financial period from Jan 1, 2023 to June 30, 2023.

In a statement, Sunway Group president Tan Sri Chew Chee Kin said he was pleased that the group continued to deliver strong financial performance in the second quarter of 2023.

“For the longer term, the group is looking forward to the completion of the Rapid Transit System rail link between Johor and Singapore in 2026 and the potential establishment of the Johor-Singapore Special Economic Zone, which will substantially improve the cross-border movement of people and goods.

“Such developments will augur well for Sunway City Iskandar Puteri, the group’s flagship township development, which is strategically located between Puteri Harbour and the Second Link to Singapore.”

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