Sunway's Velocity Mall helps lift 1Q net profit by 14.1%

KUALA LUMPUR (May 22): Sunway Bhd’s net profit for the first financial quarter ended March 31, 2018 (1QFY18) grew 14.1% to RM121.92 million from RM106.89 million a year ago, mainly due to a higher contribution from its property investment segment.

Its earnings per share expanded to 2.49 sen from 2.26 sen a year ago.

Quarterly revenue grew 20.2% to RM1.31 billion, from RM1.09 billion recorded for 1QFY17, as all segments — save for property development — showed improved contributions during the quarter under review.

In a bourse filing, Sunway said its property investment segment reported a year-on-year increase in profit before tax of 40.6%, mainly due to the better performance of Sunway Velocity Mall in Cheras — which began operations in September 2017 — compared to its initial period.

Sunway said the onset of a new administration has injected a renewed sense of optimism.

“In this new environment, the group is confident that its broad range of businesses will continue to expand and prosper in the years ahead,” it said.

In a separate statement, Sunway chief financial officer Chong Chang Choong said the group is confident that it will continue to perform better in the next quarter, barring unforeseen circumstances.

“Our strong balance sheet and diversified portfolio put us in a good position to capitalise on any opportunities which may arise,” he said, adding that the outstanding order book for construction stood at RM6.1 billion as at end-March.

This article first appeared in The Edge Financial Daily, on May 22, 2018.

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