Sunway to focus on core businesses

For the first quarter ended March 31, 2024, Sunway’s net profit rose to RM172.23mil from RM141.64mil a year earlier.

PETALING JAYA: Sunway Bhd will continue to focus on its core businesses, particularly the healthcare, property development and construction segments.

For the first quarter ended March 31, 2024 (1Q24), Sunway’s net profit rose to RM172.23mil from RM141.64mil in the previous corresponding period, with its property development and healthcare segments leading the growth.

Revenue grew to RM1.42bil from RM1.26bil a year earlier. The increase in revenue was attributed to higher contributions from all business segments, it said in a filing with Bursa Malaysia.

Basic earnings per share stood at 2.27 sen against 1.98 sen previously.

In a statement, Sunway said the property development segment recorded revenue of RM287.7mil in 1Q24, a 16% increase compared to the same quarter in the preceding financial year.

Its pre-tax profit, meanwhile, increased 68% to RM38.8mil in 1Q24.

“The strong financial performance was fuelled by higher sales and progress billings from new and ongoing local development projects.

“The development profit from one of the group’s property projects in Singapore is expected to be recognised upon its completion and handover in 2Q24.”

The accumulated progressive profits for the project amounted to RM120mil as at end-March 2024, the group said.

Meanwhile, the healthcare segment’s pre-tax profit increased 28% to RM36.8mil in 1Q24 from RM28.8mil in the previous year.

Sunway said the robust results were underpinned by strong performance from its three operating hospitals, supported by a 34% increase in licensed beds to 1,158.

Additionally, it said its construction arm Sunway Construction is actively involved in the construction of advanced technology facilities projects, having secured three new data centre projects in the Klang Valley in 1Q24, and continues to proactively pursue more opportunities in that space.

“It is also participating in various bids in the warehousing and semiconductor manufacturing sectors. The total outstanding order book as at March 31, 2024 is RM6.3bil.”

Commenting on the group’s results, Sunway Group president Tan Sri Chew Chee Kin said it kicked off the new financial year with optimism, supported by encouraging economic growth in the first quarter of the year.

“The group continues to focus on its core businesses, particularly the healthcare, property development and construction segments.

“The establishment of the Johor-Singapore Special Economic Zone and the Rapid Transit System Link project between Johor Baru and Singapore will be a catalytic to the economic growth of the southern region, which augurs well for Sunway City Iskandar Puteri.”

Additionally, Chew said the healthcare segment’s three operating hospitals continue to perform well, with capacity expansion on track to cater to the growing demand for quality healthcare services.

“Two new hospitals, Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh, are scheduled to open in 4Q24 and 1Q25, respectively.”

Chew added that this will add 600-bed capacity progressively.

“The group is excited over the forthcoming opening of the two new hospitals, which will accelerate the growth trajectory of the healthcare segment,” he said.