Sunway City Kuala Lumpur,23 February 2022
Sunway Construction Group Berhad (Sunway Construction or Group) is pleased to announce its financial results for the fourth quarter ended 31 December 2021 (4Q2021).
Sunway Construction registered revenue of RM626.6 million in the fourth quarter of financial year ended 31 December 2021, from RM627.2 million in the corresponding quarter of the preceding year (4Q2020). Revenue for the quarter was marginally lower due to lower revenue contribution from the construction segment, which was partially mitigated by higher revenue contribution from the precast segment. Profit before tax (PBT) more than doubled, from RM41.6 million in 4Q2020 to RM91.0 million in 4Q2021. The strong PBT marks the Group’s highest quarterly PBT since its IPO in 2015.
The Construction segment recorded revenue of RM579.9 million for the quarter ended 31 December 2021. In the corresponding quarter in the preceding year, revenue for the Construction segment was marginally higher at RM585.0 million on the back of settlement of one its projects in India amounting to RM42 million. PBT more than doubled, from RM37.3 million in 4Q2020 to RM88.7 million in 4Q2021. PBT margin improved in tandem, from 6.4% in 4Q2020 to 15.3% in 4Q2021 boosted by re-calibration of margin to reflect improvement in margin visibility as these projects are approaching completion.
For the quarter under review, Sunway Construction was awarded two LSS 4 EPC contracts of 50MW each with combined contract value of RM385 million, marking its maiden foray in large-scale solar projects for the Group. In all, the Group secured RM1.5 billion of new orders for the financial year ended 31 December 2021.
Revenue for the precast segment rose 10.7% year-on-year (y-o-y) in 4Q2021 to RM46.7 million, supported by higher outstanding order book. Despite the higher revenue, PBT eased to RM2.3 million in 4Q2021, from RM4.3 million in the same quarter last year on the back of higher steel bar prices.
In Singapore, the Housing and Development Board (HDB) plans to launch up to 23,000 new Build-to-Order (BTO) flats each year in 2022 and 2023, representing an increase of 35% from the previous year’s launch. The Group’s third Integrated Construction and Prefabrication Hub (ICPH) targeted to commence operations in the second half of 2022 is timely and expected to benefit from the increase in demand for precast products.
For the financial year ended 31 December 2021, Sunway Construction posted an increase in revenue of 11.4% y-o-y to RM1,729.2 million, from RM1,552.6 million in FY2020, on the back of higher revenue from Construction and Precast segments. PBT soared 50.0% y-o-y, from RM101.5 million in FY2020 to RM152.2 million in FY2021, primarily contributed by margin improvement for the Construction segment.
Sunway Construction Group Managing Director Chung Soo Kiong said, “It is heartening to note that Sunway Construction posted the strongest quarterly PBT since our IPO in 2015. Our strongest earnings since inception reflects the underlying strength and resilience of our business despite challenging macroeconomic conditions and is a testament to our commitment to deliver solid financial performance to our shareholders.”
Commenting on the Group’s prospects in 2022, he added, “The Malaysian economy is projected to grow at a stronger pace of 5.5% to 6.5% in 2022. The solid performance demonstrated by Sunway Construction in 4Q2021 coupled with our established track record places the Group on a strong trajectory to support the recovery and growth of the nation post pandemic.”
He further added, “The Group is supported by a healthy outstanding order book of RM4.8 billion as at 31 December 2021 which provides strong earnings visibility for the next 3 years. This is further driven by our active new order book replenishment target of RM2.0 billion for 2022, underpinned by advances in sustainability which will drive our long-term performance.”
He concluded, “To strengthen our regional presence, the Group continues to expand its overseas presence in India and ASEAN countries. On the domestic front, we are actively pursuing opportunities in the private and public sectors, including any Private Funding Initiatives (PFI) as well as pipeline projects from its immediate holding company, Sunway Berhad, and in the sustainable energy segment.”