PETALING JAYA: Sunway Bhd
is remaining cautiously optimistic that it will deliver stable earnings in its current financial year ending Dec 31, 2026.
In a filing with Bursa Malaysia, the group said it also remains vigilant against inflationary pressures, supply chain disruptions, evolving global trade dynamics and softer consumer sentiment amid ongoing geopolitical uncertainties.
“To navigate these challenges, the group will continue exercising prudent financial discipline, while intensifying efforts to enhance operational efficiency and execution capabilities through technology innovation.”
For the first quarter ended March 31, 2026 (1Q26), Sunway’s net profit surged to RM9.4bil from RM190.55mil in 1Q25, while revenue rose to RM2.56bil from RM2.37bil a year earlier.
Sunway said the significantly higher profit was mainly due to the net gain arising from the remeasurement of the investment in Sunway Healthcare Holdings Bhd (SHH) to fair value upon its listing and reclassification as a subsidiary.
This gain amounted to RM9.1bil.
“Excluding the SHH net gain, the group’s underlying profit before tax would have been RM462.4mil, representing an improvement of approximately 52.1% against the corresponding quarter of the previous financial year.”
Sunway said the property development segment reported revenue of RM653.6mil and profit before tax of RM102.2mil for the current quarter, compared to revenue of RM263.3mil and profit before tax of RM33.4mil in the corresponding quarter of the previous financial year.
“The improved financial performance was mainly driven by the disposal of an education asset, amounting to RM357mil with a net gain of RM23.1mil, higher progress billings from local development projects and contributions from the newly acquired MCL Group.”
The property investment segment reported revenue of RM266.2mil and profit before tax of RM92.4mil for the current quarter.
This compares to revenue of RM246.4mil and profit before tax of RM92.3mil in the corresponding quarter of the previous financial year.
“The increase in revenue and profitability was mainly contributed by associate, Sunway Real Estate Investment Trust, driven by better retail performance particularly from the northern region malls but was largely offset by start-up operational losses of RM13.4mil from the newly opened property investment assets,” it said.
The construction segment meanwhile reported revenue of RM794.5mil and profit before tax of RM159.1mil for the current quarter, compared to revenue of RM1.24bil and profit before tax of RM114.5mil in the corresponding quarter of the previous financial year.
“The lower revenue was mainly due to certain data centre projects having reached their peak in earlier periods.
“However, profit before tax improved in the current quarter upon finalisation of accounts of several completed projects.”
The healthcare segment recorded revenue of RM90.8mil and profit before tax of RM31.1mil for the current quarter compared to a share of net profit of RM31.8mil in the corresponding quarter of the previous financial year.
Sunway said the segment’s results reflect a change in accounting treatment following its listing on March 18, 2026, whereby the healthcare segment’s results were equity-accounted up to March 17, 2026 and fully consolidated as a subsidiary thereafter.
“The corresponding quarter of the previous financial year reflected equity accounting only, with no revenue recognised at the group level.
“At the entity level, the lower profit before tax contribution was mainly attributable to higher depreciation and financing costs in the current quarter following the opening of Sunway Medical Centre Ipoh in April last year, partially offset by improved operating performance from its established hospitals.
Sunway said SHH continued recording an operational earnings before interest, taxes, depreciation and amortisation (Ebitda) growth of 19%, from RM94.1mil in the corresponding quarter of the previous financial year to RM112mil in the current quarter.
“Excluding listing expenses and other non-recurring costs, SHH normalised Ebitda increased at a stronger pace of 30.9% to RM121.7mil.”
