Sunway expects positive property outlook amid strong 1Q25 profit growth
PETALING JAYA: Sunway Bhd expects the outlook for the property market in Malaysia and Singapore remain positive.
In a filing with Bursa Malaysia, the company said the emergence of Johor as a prominent hub for industrial and data centre investments underscored its growing importance to Malaysia's economic position in the region.
'The Johor-Singapore Special Economic Zone creates new opportunities for Malaysia to attract more investments, reinforcing Johor's role as a strategic gateway to South-East Asia.'
For the first quarter ended March 31, 2025 (1Q25), Sunway's net profit rose to RM190.55mil from RM172.23mil in the previous corresponding quarter, while revenue in 1Q25 grew to RM2.37bil from RM1.42bil a year earlier.
Sunway said its revenue was higher in the current quarter mainly due to higher contributions from all business segments, except for the property development segment.
'As a result, pre-tax profit in the current quarter was also higher, despite lower profit contributions from property development, healthcare and others segments.'
Sunway said its property development segment reported revenue of RM263.3mil and pre-tax profit of RM33.4mil for the current quarter, compared to revenue of RM287.7mil and pre-tax profit of RM38.8mil in the corresponding quarter of the previous financial year, representing a decrease in revenue of 8.5% and pre-tax profit of 14%.
'The lower financial performance in the current quarter was attributed to lower progress billings from local and overseas development projects.
'It should be noted that in compliance with MFRS 15, the development profits from one of the group's ongoing Singapore property development projects will only be recognised upon completion and handover of the project.'
As a result, Sunway said the accumulated progressive profits of this project at the end of the current quarter of RM12.2mil was not recognised.
Meanwhile, the group's construction segment reported revenue of RM1.24bil and pre-tax profit of RM114.5mil for the current quarter, compared to revenue of RM372.5mil and pre-tax profit of RM42.4mil in the corresponding quarter of the previous financial year, representing a notable increase in revenue of 232.4% and pre-tax profit tax of 170.4%.
'The higher revenue and pre-tax profit in the current quarter were mainly due to contributions from the accelerated progress of data centre projects,' it said.
As for the group's healthcare segment, it reported a share of net profit of RM31.8mil in the current quarter compared to RM36.8mil in the corresponding quarter of the previous financial year, representing a decrease of 13.6%.
'The decline was mainly due to a share of RM11.7mil in combined start-up operational losses from the newly opened Sunway Medical Centre (SMC) Damansara and pre-commencement costs from SMC Ipoh, which commenced operations in April 2025.
'Excluding these costs, the healthcare segment delivered improved performance driven by stronger operational results from SMC Sunway City, SMC Velocity, and SMC Penang.'
Sunway said this growth was attributed to higher number of patients and additional licensed beds within the healthcare group compared to the corresponding quarter of the previous financial year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
5 hours ago
- Free Malaysia Today
Bursa slaps 5 directors of real estate company with RM350,000 fine
Bursa Malaysia Securities said it views the breach seriously, as an immediate announcement was crucial to shareholders and investors in that it related to Meridian Bhd's level of operations to warrant continued trading or listing on the Official List. (Bernama pic) PETALING JAYA : Bursa Malaysia Securities Bhd has fined five directors of real estate services company Meridian Bhd a total of RM350,000 for failure to immediately announce that the company had an insignificant business or operations. Bursa said Meridian had been publicly reprimanded for breach of the Main Market Listing Requirements following the announcement of the unaudited quarterly report for the financial period ended June 30, 2023 (Q4 2023) on Aug 29 that year. 'Meridian had an insignificant business or operations based on Q4 2023, where the company's revenue of RM2.738 million on a consolidated basis represented 0.93% of the company's share capital of RM294.021 million as at June 30. 'Meridian only made the first announcement on Sept 26 after a delay of 28 days,' it said in a statement. Bursa named the five directors as former CEO Yap Ting Hau, who resigned on Dec 29, 2023, Tang Boon Koon, Chew Shin Yong, Ng Kok Hok and Kunamony S Kandiah. Yap and Tang were fined RM100,000 each, while Chew, Ng and Kunamony were fined RM50,000 each. 'Bursa Malaysia Securities views the breach seriously, as the first announcement was crucial to shareholders and investors in that it related to Meridian's level of operations to warrant continued trading or listing on the Official List,' said the bourse. It said there will be possible suspension and delisting if Meridian fails to regularise its level of operations within the timeframes prescribed by the listing requirements. 'Timely disclosure is important towards facilitating informed investment decisions,' it said.
New Straits Times
6 hours ago
- New Straits Times
Microlink may emerge as substantial shareholder in Omesti via debt deal
KUALA LUMPUR: Microlink Solutions Bhd has entered into a settlement agreement with Omesti Bhd to partially settle RM8.5 million in debt owed by the latter through new shares, a move that could see Microlink emerge as a substantial shareholder in the technology group. The deal covers part of a total RM30.03 million outstanding owed by Omesti to Microlink for services rendered, the group said in a filing with Bursa Malaysia today. It is expected to be completed by the third quarter. Under the agreement, Omesti will issue up to 85 million new shares to Microlink at a minimum price of 10 sen per share, translating into an indicative 13.6 per cent equity stake in Omesti upon completion. Microlink said the proposed settlement was a pragmatic move to reduce receivables and mitigate default risk. "The board, save for Tan Wee Hoong who has abstained from deliberating and voting, after having considered all aspects of the proposal, is of the opinion that it is in the best interest of the company," it said. The group's audit and risk management committee agreed, describing the transaction as "fair, reasonable and on normal commercial terms" and "not detrimental to the interest of the minority shareholders." The settlement is conditional on approvals from Omesti's shareholders, Bursa Malaysia, and other relevant authorities. If the conditions are not met within 90 days, Microlink may terminate the deal and seek full repayment. In the event of default, Microlink said it also reserves the right to pursue legal action and seek full indemnification of recovery costs. The group does not expect any material impact on its share capital, gearing or earnings per share, as the transaction is non-cash in nature. It also said the settlement will not trigger a mandatory takeover offer. Microlink and Omesti are related parties. Omesti indirectly owns a 25.8 per cent stake in Microlink via its subsidiary, Omesti Holdings Bhd. Microlink director Tan Wee Hoong also sits on Omesti's board.
Focus Malaysia
7 hours ago
- Focus Malaysia
Bursa Malaysia rises for 2nd straight day on continued bargain hunting
BURSA Malaysia closed higher for the second consecutive day as bargain hunting persisted after last week's sell-off, in line with the upbeat performance of regional markets, said an analyst. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 0.67%, or 10.15 points, to 1,518.12 from Wednesday's close of 1,507.97. The benchmark index opened 2.73 points higher at 1,510.70, and moved between 1,509.25 and 1,520.34 throughout the trading session. The broader market remained positive with gainers outpacing decliners 641 to 341, while 437 counters were unchanged, 937 untraded, and 20 suspended. Turnover improved to 2.42 billion units valued at RM2.27 bil compared with Wednesday's 2.40 billion units worth RM2.03 bil. ‒ June 5, 2025
