SUNWAY BERHAD REVENUE INCREASES 15.4%

SUNWAY BERHAD REVENUE INCREASES 15.4%

SUNWAY BERHAD REVENUE INCREASES 15.4%

  • Year-on-year revenue increase contributed by better performance in most segments
  • Strong construction outstanding order book of RM6.1 billion providing earnings visibility for the next 3 years, and order book replenishment of RM4.0 billion
  • Second interim dividend of 3 sen per share, translating to 6 sen per share for the full year

Sunway City, 28 February 2018 – Sunway Berhad today reported a revenue of RM5,374.8 million and profit before tax of RM882.2 million for the current 12 months period ended 31 December 2017 compared to revenue of RM4,655.6 million and profit before tax of RM859.0 million for the corresponding period last year, representing an increase in revenue of 15.4% and profit before tax of 2.7%. Performance in the current period was better due to higher contributions from most business segments, except the property development and quarry segments.

Sunway declared a second interim cash dividend of 3 sen per share. Total full year dividend, including the first interim dividend paid of 3 sen per share, is 6 sen per share. For comparison, the full year dividend of 6 sen per share is equivalent to 14 sen per share prior to the bonus issue of ordinary shares in October 2017 – up from the previous year dividend of 12.14 sen.

“We are well-positioned to capitalise on the positive economic prospects of Malaysia which will continue to be sustained by domestic demand and ongoing implementation of infrastructure projects by the government. We will also benefit from the various government initiatives to promote the tourism and healthcare tourism sectors. We expect to continue to deliver satisfactory performance in 2018, barring any unforeseen circumstances,” said Chong Chang Choong, Sunway Berhad’s Chief Financial Officer.

The property development segment reported revenue of RM989.7 million and profit before tax of RM241.1 million for the current 12 months period ended 31 December 2017 compared to revenue of RM1,203.0 million and profit before tax of RM328.2 million for the corresponding 12 months period ended 31 December 2016, representing a decrease in revenue of 17.7% and profit before tax of 26.5%. The performance for the current period was lower mainly due to lower sales and progress billings from local development projects.

The Group targets to launch approximately RM2.0 billion worth of properties in 2018. The launches will mainly be residential properties, half of which are located within Sunway’s integrated townships which have recorded strong take up rates for past launches. Other launches are urban lifestyle developments, spread across multiple strategic locations with good connectivity. The segment is also well positioned to actively pursue strategic land banking, having acquired a 8.56-acre land in Brookvale Park, Singapore for SGD530.0 million in February via a JV comprising Hoi Hup Realty Pte Ltd (60%), Sunway Developments Pte Ltd (30%) and S C Wong Pte Ltd (10%).

The property investment segment reported revenue of RM865.4 million and profit before tax of RM212.7 million for the current 12 months period ended 31 December 2017 compared to revenue of RM692.1 million and profit before tax of RM158.4 million for the corresponding 12 months period ended 31 December 2016, representing an increase in revenue of 25.0% and profit before tax of 34.3%. Revenue was higher in the current period mainly due to the additional contribution from Sunway Velocity Mall (which opened in December 2016), an increase in the number of visitors to the Group’s theme parks, and the re-opening of the refurbished Sunway Pyramid Hotel in 2017.

The construction segment reported revenue of RM1,627.7 million and profit before tax of RM174.4 million for the current 12 months period ended 31 December 2017 compared to revenue of RM1,137.4 million and profit before tax of RM134.1 million for the corresponding 12 months period ended 31 December 2016, representing an increase in revenue of 43.1% and profit before tax of 30.0%. Performance of this segment in the current period was better due to stronger progress billings from local construction projects and lower intra-group eliminations. As at 31 December 2017, the construction outstanding order book is RM6.1 billion, providing earnings visibility for the next 3 years. The construction segment had recorded an order book replenishment of RM4.0 billion in 2017, doubling the management’s target of RM2.0 billion.