Sunway Berhad Posts Higher Profit Before Tax of RM256.6 Million in 4Q 2021, Declares Second Interim Cash Dividend of 1.5 Sen
Sunway Berhad (“Sunway” or “Group”) today announced its fourth quarter financial results (“4Q 2021”) for the financial year ended 31 December 2021.
During the current quarter, the Group completed the initial closing in relation to the proposed investment of Sunway Healthcare Group by Greenwood Capital Pte. Ltd. In relation to this, the Group has deconsolidated Sunway Healthcare Group and reclassified its remaining equity interest in Sunway Healthcare Group as joint ventures. The financial results of the healthcare segment is reported separately under Discontinued Operations in the consolidated income statements in accordance to MFRS 5 in the current quarter. The Group has recognised a one-off net gain of RM2,286.1 million arising from the partial divestment of Sunway Healthcare Group which increased the net assets per share to RM2.05.
Revenue from Continuing Operations for the current quarter ended 31 December 2021 increased 13.5% year-on-year (“y-o-y”) to RM1,243.8 million, predominantly due to stronger revenue recorded from property investment and others segments which managed to offset the lower revenue from the other business segments. The operating performance for the property investment segment improved significantly in the current quarter due to the reopening of the social and local tourism-related activities in Phase 4 of the COVID-19 National Recovery Plan.
The Group recorded profit before tax (“PBT”) of RM256.6 million from Continuing Operations for the current quarter ended 31 December 2021, from RM236.1 million in the corresponding quarter of the previous financial year. This represents an increase of 8.7% y-o-y which was underpinned by stronger contributions from property investment, construction and others segments.
Pursuant to the adoption of MFRS 15, it should be noted that development profit on two of the Group’s on-going property development projects in Singapore will only be recognised upon completion and handover of the projects. As at end of the current quarter, the accumulated progressive profits of these projects amounted to RM51.7 million, of which RM11.7 million was recorded in the current quarter, was not recognised.
Under the Discontinued Operations, the healthcare segment recorded a net profit of RM2,319.8 million in the current quarter. Excluding the one-off net gain arising from the partial divestment of Sunway Healthcare Group of RM2,286.1 million, the operating net profit increased 50% y-o-y, from RM22.5 million in 4Q 2020 to RM33.7 million in 4Q 2021. The strong performance in the current quarter was due to sustained improvement in hospital activities with higher number of admissions and outpatient treatments at both Sunway Medical Centre and Sunway Medical Centre Velocity. In addition, Sunway Medical Centre Velocity achieved its maiden operating profit of RM0.5 million in the current quarter.
The Group declared a second interim single-tier cash dividend of 1.50 sen per ordinary share for the financial year ended 31 December 2021 and a preferential dividend of 5.25% per annum [based on the issue price of RM1.00] per irredeemable convertible preference shares for the period from 1 July 2021 up to and including 31 December 2021, in respect of the financial year ended 31 December 2021. For the financial year ended 31 December 2021, the Group declared a dividend of 2.5 sen per ordinary shares.
Sunway Group Chief Financial Officer, Chong Chang Choong commented, “Two years into the Coronavirus pandemic, the Group is now operationally better prepared to manage the consequential impact caused by the pandemic. The Group is hopeful that the domestic economy will experience minimum economic lockdowns this year which augurs well for the Group to benefit from the more sustainable economy recovery.
He added, “The Group is also looking forward to the reopening of the country’s borders as this will further benefit our leisure and hospitality, and healthcare services from the resumptions of inbound leisure and medical tourism.”
He concluded, “Barring any unforeseen circumstances, the Group expects the financial performance of 2022 to be better than last year.”
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