KUALA LUMPUR (Feb 28): Better cost management helped to boost Sunway Bhd’s earnings for the fourth financial quarter ended Dec 31, 2018 (4QFY18).

It posted quarterly net profit of RM192.32 million, up 11.4% from RM172.64 million a year earlier on lower operating expenses, finance costs and income tax expenses despite recording lower revenue.

Quarterly earnings per share improved to 3.96 sen from 3.59 sen, the group said in a filing with Bursa Malaysia.

Quarterly revenue fell 15.8% to RM1.37 billion from RM1.63 billion previously primarily due to lower contributions from the property development, property investment and construction segments.

The group proposed a second interim dividend of two sen per share and a share dividend distribution on the basis of one treasury share for every 100 existing ordinary shares held, bringing its full-year payout to 7.12 sen.

Sunway said its property development segment recorded a 48.8% decline in revenue and a 52.8% drop on profit before tax mainly due to lower progress billings from local development projects.

The segment reported lower revenue of RM203.8 million compared with revenue of RM398.3 million in the previous year as well as lower profit before tax of RM47.5 million in the current quarter compared with RM100.7 million in the previous corresponding quarter.

As for the property investment segment, Sunway said the segment’s revenue shrank 14.7% while pre-tax profit increased 22.3%. It reported revenue of RM140.3 million and profit before tax of RM78.6 million in the current quarter compared with revenue of RM164.5 million and profit before tax of RM64.3 million in the corresponding quarter of the previous financial year.

“The lower revenue in the current quarter was mainly due to the reclassification of the Group’s investment in Sunway Velocity Mall Sdn Bhd and Sunway Velocity Hotel Sdn Bhd from investments in subsidiaries to investments in joint ventures,” it said.

“Profit before tax, however, was higher due to higher fair value gains from the revaluation of investment properties, which was RM29.9 million in the current quarter compared with RM14.9 million in the corresponding quarter of the previous financial year. Profit before tax in the corresponding quarter of the previous financial year was also impacted by impairment for the BRT Park N’ Ride facilities,” it added.

The construction segment recorded lower contribution. The segment’s revenue was RM489.1 million and profit before tax was RM50.7 million in the current quarter compared with revenue of RM583.3 million and profit before tax of RM55.8 million in the corresponding quarter of the previous financial year, representing a decrease in revenue of 16.1% and profit before tax of 9.2%.

Quarterly revenue was lower mainly due to lower progress billings from local construction projects, while current quarter profit before tax was lower mainly due to higher intra-group eliminations.

For the full year FY18, Sunway’s net profit rose 6.19% to RM658.99 million versus RM620.59 million in FY17. Revenue increased 3.26% to RM 5.41 billion from RM 5.24 billion a year earlier.

“The group PATAMI (profit after tax and minority interest)  would have been higher by 22.9% in the current period compared with the previous corresponding period if not for the adoption of MFRS 15,” it said.

Sunway’s share price closed three sen or 1.82% lower at RM1.62 today, giving it a market capitalisation of RM7.86 billion. There were 1.83 million shares traded today.  — theedgemarkets.com

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