Latest news with #RM154.9mil
The Star
7 days ago
- Business
- The Star
Sunway-REIT 2Q net profit at RM129mil
The trust's revenue for the quarter rose 20.4% year-on-year to RM211.4mil. PETALING JAYA: Sunway Real Estate Investment Trust (Sunway-REIT) will continue to be cautious in view of the external challenges posed by the recently imposed US tariff barriers, which could dampen business confidence and weigh on consumer sentiment. 'We will continue to monitor the market closely in response and will intensify efforts to diversify our tenant mix, as well as to increase focus on domestic and regional travellers,' it said in a Bursa Malaysia filing. Releasing its results yesterday, the investment manager recorded a softer net profit of RM129.35mil for the second quarter ended June 30, 2025 (2Q25), compared with RM145.07mil in the corresponding quarter last year. Its basic earnings per share also dropped from 4.21 sen in 3Q24 to 3.61 sen for the quarter in review. Nonetheless, the trust's revenue for the quarter rose 20.4% year-on-year to RM211.4mil from RM175.57mil, underpinned by higher contributions from the retail and industrial, and other segments. Net property income (NPI) was also higher at RM154.9mil versus RM129.3mil in the same quarter last year. The retail segment remained the main growth driver, with revenue climbing 29.4% to RM160mil from RM123.7mil in 2Q24. The performance was supported by income from retail assets acquired in 2024, higher tenant sales and footfall at Sunway Pyramid Mall following the opening of its Oasis wing, as well as the earlier-than-expected full reopening of Sunway Carnival Mall's existing wing. NPI for the segment expanded to RM114.1mil from RM86.17mil previously. The industrial and other segment posted a 99.7% surge in revenue to RM4.5mil from RM2.2mil, boosted by rental contributions from new tenants at Sunway-REIT Industrial – Petaling Jaya 1. The addition of Sunway-REIT Industrial – Prai, acquired in October 2024, also lifted the segment's earnings. The segment's NPI rose to RM3.19mil in 2Q25 from RM2.02mil previously. The services segment delivered a modest 2.3% improvement in revenue to RM9.8mil from RM9.58mil. However, the hotel segment's revenue fell 12.9% to RM16.74mil from RM19.21mil, weighed down by lower occupancy rates at Klang Valley hotels. The office segment also saw a decline, with revenue easing 2.2% to RM20.36mil from RM20.82mil as occupancy rates slipped to 82% from 84% a year earlier. For the first half of financial year 2025 (1H25), Sunway-REIT posted a net profit of RM233.67mil, marginally higher than RM232.05mil in the same period last year. Basic earnings per share eased to 6.49 sen from 6.60 sen. Revenue for the six months rose to RM430.26mil from RM354.16mil previously, while NPI improved to RM312.1mil from RM259.8mil. On a segmental basis, retail revenue for the 1H25 grew 31.3%, services rose 2.3%, while industrial and others recorded a 91.1% increase. The hotel and office segments posted revenue declines of 14.3% and 3.1%, respectively, due to softer demand in the hospitality market and slightly weaker office occupancy. Sunway-REIT declared a distribution per unit of 5.68 sen for the six months to June 30, 2025. On a brighter note, the group said it views the latest overnight policy rate cut of 25 basis points by Bank Negara Malaysia to be a welcomed development. 'As a yield-focused investment vehicle, lower borrowing costs will help improve interest margins and support our capital management strategy. 'This monetary easing provides additional headroom to pursue yield-accretive acquisitions and asset enhancement initiatives, reinforcing our commitment to deliver sustainable returns to unitholders,' it added.
The Star
20-05-2025
- Business
- The Star
Eco-Shop registers stronger 3Q25 results
Eco-Shop saw its third-quarter net profit soar 45% year-on-year to RM61.7mil. PETALING JAYA: Eco-Shop Marketing Bhd (Eco-Shop) is bullish over its prospects for the rest of the financial year ending May 2025 (FY25), as it carries over confidence from building on the strong double-digit growth in revenue and profit after tax (PAT) recorded in FY24. Citing a report from Frost & Sullivan GIC Malaysia Sdn Bhd, the group said Malaysian dollar store retail sector penetration remains relatively low compared to more mature markets such as Japan, Canada and the United States, and in terms of sales value, this sector is expected to grow at a compound annual growth rate of 14.2% in the next five years from to 2029. Releasing its results for the third quarter ended Feb 28 yesterday (3Q25), Eco-Shop saw net profit soar 45% year-on-year (y-o-y) to RM61.7mil, as revenue also increased 17.2% to RM736.4mil. The group attributed its turnover growth primarily to the expansion of its store network, with the opening of 26 new stores in 3Q25 compared to 14 in the corresponding period of last year. 'The total store count increased from 278 stores in 3Q24 to 349 stores in 3Q25. 'Additionally, the group's revenue was supported by a modest increase in same store growth (SSSG) of 0.6%,' said Eco-Shop in a statement to Bursa Malaysia. At the same time, the strong profit margin was attributable to a more favourable product mix and the strengthening of the ringgit against the yuan. Cumulatively for the nine months ended February (9M25), Eco-Shop posted a net profit y-o-y growth of 35.9% to RM154.9mil, as revenue escalated 19% to RM2.1bil. Eco-Shop said the strong performance over the three quarters was mainly due to the opening of 59 new stores during the period and an SSSG of 2.1%, aside from the strengthening of the ringgit against the yuan that also helped improve profitability. The group did not declare any dividends for the year. Looking ahead, Eco-Shop said it will continue to be vigilant and well-prepared to manage various cost and risk factors, including the upcoming electricity tariff hike effective from July 1, the implementation of the multi-tier levy system that could increase the cost of hiring foreign workers, and the enforcement of a mandatory 2% Employees' Provident Fund contribution for non-citizen employees. 'As our store network continues to grow, we anticipate greater demand for distribution and storage capabilities. 'To support this, we plan to strengthen our logistics infrastructure in Peninsular Malaysia. 'Construction of a semi-automated distribution centre on a 307,560 sq m site in Klang, Selangor, is expected to commence in the first quarter of 2026, with completion targeted for the financial year ending May 31, 2027,' it said.
The Star
20-05-2025
- Business
- The Star
Eco-Shop eyes further expansion after strong 3Q results
PETALING JAYA: Eco-Shop Marketing Bhd (Eco-Shop) is bullish over its prospects for the rest of the financial year ending May 2025 (FY25), as it carries over confidence from building on the strong double-digit growth in revenue and PAT recorded in FY24. Citing a report from Frost & Sullivan GIC Malaysia Sdn Bhd, the group said Malaysian dollar store retail sector penetration remains relatively low compared to more mature markets such as Japan, Canada, and the United States, and in terms of sales value, this sector is expected to grow at a compound annual growth rate of 14.2% in the next five years from to 2029. Releasing its results for the third quarter ended February 28 yesterday (3Q25), Eco-Shop saw net profit soar 45% year-on-year (y-o-y) to RM61.7mil, as revenue also increased 17.2% to RM736.4mil. The group attributed its turnover growth primarily to the expansion of its store network, with the opening of 26 new stores in 3Q25 compared to 14 in the corresponding period of last year. 'The total store count increased from 278 stores in 3Q24 to 349 stores in 3Q25. Additionally, the group's revenue was supported by a modest increase in same store growth (SSSG) of 0.6%,' said Eco-Shop in a statement to Bursa Malaysia. At the same time, the strong profit margin was attributable to a more favourable product mix and the strengthening of the Malaysian ringgit against the Chinese yuan. Cumulatively for the nine months ended February (9M25), Eco-Shop posted a net profit y-o-y growth of 35.9% to RM154.9mil, as revenue escalated 19% to RM2.1bil. Eco-Shop said the strong performance over the three quarters was mainly due to the opening of 59 new stores during the period and an SSSG of 2.1%, aside from the strengthening of the ringgit against the yuan that also helped improve profitability. The group did not declare any dividends for the year. Looking ahead, Eco-Shop said it will continue to be vigilant and well-prepared to manage various cost and risk factors, including the upcoming electricity tariff hike effective from July 1, the implementation of the multi-tier levy system that could increase the cost of hiring foreign workers, and the enforcement of a mandatory 2% Employees' Provident Fund Board contribution for non-citizen employees. 'As our store network continues to grow, we anticipate greater demand for distribution and storage capabilities. To support this, we plan to strengthen our logistics infrastructure in Peninsular Malaysia. 'Construction of a semi-automated distribution centre on a 307,560 sq m site in Klang, Selangor is expected to commence in the first quarter of 2026, with completion targeted for the financial year ending May 31, 2027,' it said.
