Latest news with #SunwayBhd
The Star
22-05-2025
- Business
- The Star
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.
New Straits Times
22-05-2025
- Business
- New Straits Times
Sunway posts higher 1Q net profit of RM190.55mil
KUALA LUMPUR: Sunway Bhd recorded a higher net profit of RM190.55 million in the first quarter ended March 31, 2025 (1Q 2025), an increase of 11 per cent from RM172.22 million in the same period last year. Revenue also rose by 67 per cent to RM2.36 billion from RM1.41 billion previously, mainly due to higher contributions from all business segments except for the property development segment. Operating expenses, however, increased 69 per cent to RM2.19 billion in 1Q 2025 compared to RM1.30 billion in the previous corresponding quarter. In a Bursa Malaysia filing, Sunway said its property development segment reported revenue of RM263.3 million compared to revenue of RM287.7 million in 1Q 2024, attributed to lower progress billings from local and overseas development projects. "It should be noted that in compliance with the Malaysian Financial Reporting Standards (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, the accumulated progressive profits of this project at the end of the current quarter of RM12.2 million were not recognised," it said. Barring any unforeseen circumstances, the board is confident that Sunway will cautiously navigate the headwinds surrounding tariffs and policy uncertainties. It added that the group's performance for the year is expected to remain strong.-- BERNAMA
The Star
20-05-2025
- Business
- The Star
SunCon posts stellar quarterly showing
SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) more than doubled its revenue and net profit in its first quarter (1Q25), driven by strong momentum in data centre (DC) and infrastructure projects, and expects sustained growth for the full year. Backed by a RM6.6bil order book and an active tender pipeline, SunCon remains confident, especially in the advanced technology facilities segment. The group has completed one DC project and is managing five ongoing projects for major multinational clients. 'While recent reports have highlighted that several global technology firms are scaling back or deferring certain DC investments across various regions, including Asean, we are pleased to report that progress at our project sites remains robust,' it noted in a recent filling. 'Likewise, our DC tender pipeline remains healthy, with several new bids released in recent weeks.' Furthermore, it said 'recent indications from the US administration to potentially revoke or revise earlier AI chip export restrictions are expected to improve market sentiment and support continued infrastructure investments'. Still, the group said it is not overly reliant on DCs, with ongoing bids in public and private sectors – including the Penang Light Rail Transit (LRT), Penang International Airport expansion, and industrial facilities – along with a steady pipeline of in-house jobs from parent Sunway Bhd . In Singapore, where over 90% of its precast sales are tied to Housing Development Board (HDB) projects, SunCon said demand remains solid. It said the HDB is targeting over 50,000 build-to-order (BTO) flat launches from 2025 to 2027. Beyond HDB developments, SunCon said its precast division has also secured two DC jobs and is expanding into industrial builds. 'Barring unforeseen circumstances, including material price fluctuations, the group is optimistic of registering positive growth for financial year 2025 based on our existing order book,' SunCon said. For 1Q25, SunCon's revenue more than doubled to RM1.4bil from RM604.8mil a year earlier. Net profit also surged, rising over two-fold to RM75.72mil from RM32.4mil in 1Q24, translating to an earnings per share of 5.87 sen versus 2.51 sen previously. SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. It said the precast segment saw revenue and profits moderate, reflecting prior year peak deliveries and ongoing project transitions. SunCon has declared a first interim single-tier dividend of five sen per share, payable on June 25. Meanwhile, in a separate filing, SunCon said its wholly-owned subsidiary Sunway Construction Sdn Bhd (SCSB) had entered into a sales and purchase agreement with Sunway Enterprise (1988) Sdn Bhd – an indirect wholly-owned subsidiary of Sunway Bhd – to dispose of construction machinery and equipment for RM8.68mil. SunCon said the proposed disposal is part of a strategic initiative to refocus on high-value project delivery and core construction competencies. SunCon said the disposal is expected to result in a gain of about RM1.3mil, with net proceeds to be used for the group's general working capital. Separately, SunCon also announced that its subsidiary, SCSB, had accepted a letter of award from K2 Strategic Infrastructure Malaysia Sdn Bhd for the final stage of a DC development project in Johor. The Stage 3 general contractor package, valued at RM260mil, brings the total contract sum for the project to RM392.7mil.
The Star
14-05-2025
- Business
- The Star
Year-end listing for Sunway's healthcare arm
HLIB Research said the healthcare segment would remain a core earnings pillar for Sunway Bhd. PETALING JAYA: Sunway Healthcare Group (SHG) is expected to be listed by the end of the year at the earliest, according to Hong Leong Investment Bank (HLIB) Research. It said the healthcare segment would remain a core earnings pillar for Sunway Bhd , with the group to retain a significant stake that enables it to consolidate SHG's results. 'With strong growth ahead from hospital expansions and rising foreign patient numbers, the listing is unlikely to cause a material earnings dip,' it said. SHG continues to scale rapidly, with the opening of SMC Damansara in December 2024 and SMC Ipoh in April 2025. It is also increasing its hospital portfolio to five from three. 'As highlighted in our earlier report, foreign patients offer substantial earnings potential, generating over four times the revenue per bed and significantly higher earnings before interest, taxes, depreciation and amortisation margins compared with domestic patients. 'Recognising this potential, SHG targets to scale up its foreign patient mix to 15% in 2025 from around 10% in 2024,' the research house noted. It expected the Sunway group's property segment to be supported by RM4.1bil worth of launches in the pipeline. 'The group is entering its busiest year in Johor with RM1.26bil in planned launches. And it is also marking a new milestone in Singapore with four active projects – the most in its history,' the research house said.
