Sunway’s 2-quarter sales fall, Since property investments yield less
August 25, 2023
Sunway Bhd’s net profit dropped by 7.2% in the second quarter ended June 30, 2023 (2QFY2023), from RM161.49 million the year before to RM149.93 million. This was because less money came in from property investments on various condos like Tembusu Grand, and other running income of Tembusu Grand Developer, which more than made up for the fact that revenue went up.
The group said that because of how Malaysian Financial Reporting Standards (MFRS) 15 handles accounts, the development profit from two of the group’s Singapore property development projects that are still going on will not be seen until the projects are finished and handed over.
So, the group said in a statement to Bursa Malaysia that the collected progressive profit from these projects as of the end of 2QFY2023, which was RM131.1 million and included RM9.5 million for the quarter, was not recorded.
Sunway’s sales went up by 14.7%, from RM1.28 billion to RM1.47 billion in 2QFY2023. This was because most of its business areas did better.
For the first half of FY2023, the group announced a first interim dividend of 2 sen per share and a preferred dividend of 5.25% (based on the issue price of RM1.00) per irredeemable converted preference share.
For the six months that finished on June 30, the net profit went down by 2%, from RM298 million to RM291.57 million. However, sales went up by over 14%, from RM2.39 billion to RM2.73 billion.
In a release, Sunway Group president Tan Sri Chew Chee Kin said, “The healthcare segment will continue to be one of the group’s main growth drivers as the three existing hospitals continue to show strong growth.” It will make more money in the future because several new hospitals will open in the next few years.
Chew thinks that the group’s leisure, hotel, and healthcare areas will do better in the second half of this year because there will be more people coming from other countries for medical and vacation travel.
He said that Sunway is looking forward to the Rapid Transit System train link between Johor and Singapore being finished in 2026 and to the possible creation of the Johor-Singapore Special Economic Zone, which will make it much easier for people and things to move back and forth across the border.