Sunway 3Q net profit up 27% on higher property sector contribution

KUALA LUMPUR (Nov 22): Sunway Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) rose 27% to RM183.42 million from RM144.92 million a year earlier, thanks to higher contributions from its property development, property investment and quarry segments.

Revenue for the quarter, however, fell 13% to RM1.23 billion from RM1.42 billion previously, the group said in a statement yesterday.

Sunway said property sales stood at RM1.1 billion as at Sept 30, with strong unbilled sales registering at RM2.8 billion.

“The construction outstanding order book stood at RM5.6 billion with RM1.73 billion new orders received to date, surpassing the 2019 target of RM1.5 billion,” it said, adding that the outstanding order book will provide earnings visibility for the next three years.

For the cumulative nine-month period (9MFY19), Sunway said its net profit rose 22% to RM566.32 million, while revenue fell 13% to RM3.43 billion.

Sunway group chief financial officer Chong Chang Choong said the group will continue with its prudent business strategy to ensure sustainable growth, amid an uncertain operating environment.

Barring any unforeseen circumstances, he said the group will continue to perform well for the rest of this year.

The share price of Sunway ended one sen or 0.56% lower at RM1.77 yesterday, for a market capitalisation of RM8.69 billion.

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