Sunway's Profit Before Tax is 318% Higher

Pursuant to the adoption of MFRS 15, development profit from two of Sunway's property development projects in Singapore will only be recognised upon completion and handover of the projects

Sunway's Profit Before Tax is 318% Higher

Sunway City Kuala Lumpur, 25 August 2022 – Sunway Bhd says recorded strong financial performance for the quarter ended 30 June 2022. Revenue soared 66.9% year-on-year (yoy), from RM767.3 million in Q2 FY2021 to RM1,280.4 million in Q2 FY2022.

The higher revenue was underpinned by improved revenue performance from all business segments. Profit before tax (PBT) surged 317.6% y-o-y to RM215.0 million in Q2 FY2022, supported by stronger operating contributions from most business segments.

Sunway Group Chief Financial Officer, Chong Chang Choong commented, “The Group’s financial performance continued to strengthen further in the current quarter, underpinned by the steady recovery of domestic demand as economic activity continued to normalise following the reopening of the economy and its international borders.”

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The Group expects to continue to benefit from the on-going economic recovery, particularly its leisure and hospitality segments due to improving domestic tourism demands and higher tourist arrivals. In addition, the healthcare segment will also benefit from the recovering medical tourism sector as international travels start to normalise.”

Pursuant to the adoption of MFRS 15, development profit from two of the Group’s on-going property development projects in Singapore will only be recognised upon completion and handover of the projects. The accumulated profit of these projects amounted to RM87.5 million, of which RM17.6 million was recorded in the current quarter, was not recognised.

The Group declared a first interim single-tier cash dividend of 2.00 sen per ordinary share for the financial year ending 31 December 2022 and a preferential dividend of 5.25% per annum [based on the issue price of RM1.00] per irredeemable convertible preference shares for the period from 1 January 2022 up to and including 30 June 2022, in respect of the financial year ending 31 December 2022.

“While there may be downside risks to the recovery going forward due to rising inflationary expectations and higher interest rates, the domestic economy is expected to be able to weather the headwinds and sustain its growth momentum.” adds Chong Chang Choong.

“Barring any unforeseen circumstances, the financial performance for the Group is expected to be satisfactory for FY2022.”