Sunway Berhad’s PATMI Surges 13.8% in First Quarter
Profit after tax and minority interest (“PATMI”) increased by 13.8% to RM136.4 million.
Strong growth in healthcare segment, targets to open Sunway Medical Centre Velocity in August.
Sunway Berhad today reported a surge in its PATMI of 13.8% to RM136.4 million in its first quarter this year compared to RM119.9 million in the corresponding quarter of the previous financial year due to higher contributions from most business segments.
Revenue for the period is recorded at RM1,123.6 million for the current quarter ended 31 March 2019 compared to revenue of RM1,281.5 million in the corresponding quarter of the previous financial year, representing a lower revenue of 12.3% due to lesser contributions from most business segments except property investment and healthcare.
It should be noted that PATMI would have been higher by 46.7% compared to the corresponding quarter of the previous financial year if not for the adoption of MFRS 15 on one of the Group’s Singapore and China property development projects, for which the Group can only recognise the development profits upon completion. The progressive profits from these projects which amounted to RM39.5 million for the current quarter have to be deferred accordingly.
Sarena Cheah, Managing Director of Sunway Berhad’s property development division remarked, “For the 2019 financial year, we will launch projects worth RM2 billion. We are confident that the launches would continue to do well as more than 70% of the new launches are either in integrated developments and townships.”
The healthcare segment reported a strong growth, registering a 24.4% and 43.4% increase in revenue and profit before tax respectively in the current quarter compared to the corresponding quarter of the previous financial year. Moving forward, the healthcare segment will be the area of growth for the Group with more medical centres in the pipeline in strategic locations like Kuala Lumpur, Penang, Perak and Iskandar Johor. Sunway Medical Centre Velocity in Kuala Lumpur is targeted to open this August.
While the domestic economy is expected to continue to perform moderately, the economic outlook is, nevertheless, clouded by the on-going trade tensions between the United States and China. To mitigate the economic downside risks, Bank Negara has recently cut its overnight policy rate (OPR) by 25 basis points as a pre-emptive move to support the local economy.
Chong Chang Choong, Chief Financial Officer of Sunway Berhad said, “Looking ahead, the Group will continue to adopt a prudent approach in executing its business strategies. However, with Sunway Berhad’s diversified yet synergistic businesses, the Group are well positioned to meet the challenges and capitalise on any opportunities which may arise going forward.”