PETALING JAYA: Sunway Bhd
expects its core businesses to remain resilient in the second half of 2026 (2H26), supported by sustained property demand, a strong construction order book and continued growth in private healthcare and medical tourism, although geopolitical developments and external uncertainties could pose near-term challenges.
The group said its property development business remained supported by demand in key economic growth corridors, while its construction division had secured RM6.9bil in new orders year-to-date, exceeding its initial RM6bil target. It has subsequently raised its full-year order replenishment target to between RM7bil and RM9bil.
For the second quarter ended June 30, 2026 (2Q26), Sunway's revenue rose 13.4% year-on-year (y-o-y) to RM2.91bil from RM2.56bil in 2Q25, while pre-tax profit (PBT) increased 25.3% to RM496.2mil from RM396mil. Net profit attributable to owners of the parent climbed 16.7% to RM318.6mil from RM273mil, with earnings per share rising to 4.71 sen from 4.07 sen.
The stronger quarterly performance was driven by improved contributions from most major operating segments, particularly property development and healthcare.
Property development revenue increased 15.2% to RM405mil from RM351.4mil, while PBT jumped 57.2% to RM82mil from RM52.2mil. The improvement was mainly due to higher progress billings from local projects, contributions from newly acquired MCL Group and the finalisation of accounts for a completed project.
Property investment revenue rose 18.2% to RM263.4mil from RM223mil, while PBT edged up 2.5% to RM78.2mil from RM76.3mil. Excluding a RM11mil fair-value gain recorded in 2Q25, underlying PBT would have increased 19.8%.
Construction, meanwhile, saw revenue fall 38.6% to RM779.3mil from RM1.27bil as certain data centre projects had reached their peak in earlier periods. However, PBT was broadly stable at RM133.1mil against RM134.8mil previously, helped by profit recalibration following the finalisation of accounts for several completed projects.
Healthcare delivered a substantially larger contribution following the listing of Sunway Healthcare Holdings Bhd (SHH) on March 18. Its 2Q26 revenue was RM671.8mil and PBT RM99.9mil, compared with Sunway's share of net profit of RM35.5mil in 2Q25.
The comparison is not directly like-for-like because the segment was equity-accounted previously but consolidated after the listing. Operationally, healthcare revenue increased 29.6%, helped by higher patient volumes, particularly from Indonesia, China and Cambodia.
For 1H26, group revenue rose 10.8% to RM5.46bil from RM4.93bil in 1H25. PBT surged to RM10.05bil from RM700.1mil, largely because of a RM9.1bil one-off gain from the revaluation of SHH following its listing.
Excluding that gain, PBT increased RM258.5mil, or 36.9%, reflecting stronger underlying operating performance.
Property development was the standout performer for 1H26, with revenue rising 72.2% to RM1.06bil and PBT more than doubling to RM184.2mil. Construction revenue declined 37.2% to RM1.57bil, but PBT rose 17.2% to RM292.2mil, while property investment revenue increased 12.9% and PBT 1.2%.
Meanwhile, healthcare's 1H26 PBT reached RM131mil, compared with Sunway's RM67.3mil share of net profit a year earlier, again reflecting the change from equity accounting to consolidation.
Sunway declared a dividend of three sen per share for 2Q26, the only quarter thus far in FY26 where it has proposed dividends.
