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Profit After Tax and Minority Interest is up 16.2% for Sunway Berhad

Press Release by Sunway Berhad: SUNWAY BERHAD’S PATMI UP BY 16.2% OPERATIONALLY, DECLARES HIGHER INTERIM DIVIDEND OF 3.5 SEN

  • Higher revenue year-on-year due to higher contributions from the construction and trading and manufacturing segments
  • Strong construction outstanding order book of RM5.8 billion and property unbilled sales of RM1.5 billion as at 30 June 2018
  • Sunway Velocity TWO to be launched in 2H 2018; Property development segment on track to exceed sales target of RM1.3 billion
  • Declares first interim dividend of 3.5 sen per share                                                                                                

Sunway City, Aug 21 ~ Sunway Berhad today announced its second quarter financial results for the period ended 30 June 2018. The Group recorded revenue of RM1,287.1 million and profit after tax and minority interest (“PATMI”) of RM199.4 million for the current quarter ended 30 June 2018 compared to revenue of RM1,240.5 million and PATMI of RM196.1 million in the corresponding quarter of the previous financial year. The increase in revenue of 3.8% in the current quarter was primarily due to higher contributions from the construction and trading and manufacturing segments.

PATMI was marginally higher by 1.7%, despite the adoption of MFRS 15. With the adoption of MFRS 15, recognition of progressive profits of RM28.3 million from one of the Group’s Singapore property development projects, which could have been recognised in the current quarter under the progressive revenue recognition treatment, has to be deferred until its completion. Excluding the effects of the adoption of MFRS 15 in the current quarter, the Group’s PATMI would have been up by 16.2% from the previous year’s corresponding quarter.

Profit before tax of RM242.2 million for the current quarter ended 30 June 2018 was lower compared to profit before tax of RM270.2 million in the corresponding quarter of the previous financial year, mainly due to the adoption of MFRS 15, as mentioned above. The Group PATMI was higher, however, despite the lower profit before tax recorded, due to the lower share of minority interest profit for some local property development projects in the current quarter compared to the previous corresponding quarter.

Sunway declared a first interim cash dividend of 3.5 sen per share, which is higher than the first interim dividend of 3 sen declared last year.

“We look forward to continue the progress we have made in the first half of this year and further drive our performance for the subsequent quarters. Barring any unforeseen circumstances, we are confident of delivering satisfactory performance in the second half,” said Chong Chang Choong, Chief Financial Officer, Sunway Berhad.

GROUP TO LAUNCH SUNWAY VELOCITY TWO IN 2H 2018; ON TRACK TO EXCEED PROPERTY SALES TARGET OF RM1.3 BILLION

The property development segment reported revenue of RM88.7 million and profit before tax of RM46.4 million in the current quarter compared to revenue of RM270.7 million and profit before tax of RM74.9 million in the corresponding quarter of the previous financial year, representing a decrease in revenue of 67.2% and profit before tax of 38.0%.

Performance in the current quarter was lower due to lower progress billings from local development projects. The performance in the corresponding quarter of the previous financial year was also boosted by the completion and handover of a local development project during the quarter. The adoption of MFRS 15 on one of the Group’s Singapore property development projects also contributed to the lower performance.

Sarena Cheah, Managing Director of Sunway’s property development division remarked, “We are on track to exceed this year’s sales target of RM1.3 billion, as property sales have already hit the mark as at August 2018, with the exciting launch of Sunway Velocity TWO expected in 2H 2018.”

Located 3.8 km to KL City Centre, with direct links to 3 MRT and 2 LRT stations, Sunway Velocity TWO elevates city living to a whole new vibrant level. This latest project will ride on the success of the fully integrated development of Sunway Velocity, creating a harmonious blend between living, entertainment and working, all in one place.

The Group’s recent launches of Sunway GEOLake in Sunway City and Sunway Citrine Lakehomes Phase 2 in Sunway Iskandar have been met with positive responses, with encouraging booking rates of 60% and 70% respectively. On the international front, recent launches have also been very well-received, with Rivercove Residences in Singapore achieving a take-up rate of 99%, and Sunway Gardens Phase 2 in Tianjin achieving 60% bookings within a month since its launch in July 2018.

Property unbilled sales stands at RM1.5 billion as at 30 June 2018, providing earnings visibility for the segment.

 

PROPERTY INVESTMENT AND CONSTRUCTION SEGMENT RECORDED HIGHER REVENUE AND PROFIT BEFORE TAX IN Q2

The property investment segment reported revenue of RM216.7 million and profit before tax of RM102.5 million in the current quarter compared to revenue of RM207.4 million and profit before tax of RM93.4 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 4.5% and profit before tax of 9.8%.

The higher revenue in the current quarter was mainly due to higher occupancy at the Group’s portfolio of investment properties, and additional contribution from new properties such as Sunway Velocity Hotel and Sunway Geo in Sunway South Quay. Profit before tax was higher mainly due to better performance registered by Sunway Velocity Mall compared to the initial period and share of higher fair value gains from revaluation of Sunway REIT properties in the current quarter.

The construction segment recorded revenue of RM449.7 million and profit before tax of RM49.6 million in the current quarter compared to revenue of RM310.9 million and profit before tax of RM46.2 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 44.6% and profit before tax of 7.2%.

Revenue in the current quarter was higher mainly due to higher progress billings from local construction projects and lower intra-group eliminations. The construction outstanding order book stands at RM5.8 billion, with an order book replenishment of RM854 million achieved to-date.

— end of press release —

Next suggested article: Sunway Geolake: 65% booking and 80% signing S&P

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