Sunway 1Q net profit up on building sales, higher profit contributions

KUALA LUMPUR (May 27): Sunway Bhd's net profit rose 41% to RM146.54 million for the first quarter ended March 31, 2015 (1QFY15), from RM103.99 million, according to a report by The Edge Financial Daily today.

The higher net profit was contributed by capital gains of RM22.9 million from the disposal of Sunway Hotel Georgetown and Wisma Sunway, and higher net profit contributions from all its business segments, except property development, which saw a lower profit contribution.

Revenue rose by 3.41% to RM1.06 billion, from RM1.025 billion a year ago.

Meanwhile, Sunway's property development segment reported revenue of RM180.7 million and profit before tax (PBT) of RM56.9 million in the current quarter, compared with revenue of RM222.3 million and PBT of RM68.9 million during the last financial year.

“The lower financial performance was mainly due to slower progress billings from the local projects,” the company said in a filing with Bursa Malaysia yesterday.

Going forward, Sunway said it will focus on improving its efficiency and cost structure, and expects performance for the rest of FY15 to be satisfactory.