Sunway returns to profit in 3Q as business ops resume after movement restrictions lift

KUALA LUMPUR (Nov 28): Diversified conglomerate Sunway Bhd is back in the black in its third quarter with a net profit of RM132.83 million, from a net loss of RM6.71 million in the immediate preceding quarter, following the resumption of business activities on the lifting of movement restrictions imposed earlier this year to curb the pandemic's spread.

The group's revenue for the three months ended Sept 30, 2020 (3QFY20) rebounded to RM1.03 billion from RM556.64 million in 2QFY20, its stock exchange filing yesterday showed.

Almost all business segments registered improved profit contributions, the group noted, except for its property development and other segments.

On a year-on-year basis, however, the group's net profit is down 27.58% from the RM183.42 million it made in 3QFY19, as revenue dropped 16.22% from RM1.23 billion, dragged by lower contributions across all its business segments, save for quarry services.

"The softer set of financial performance in the current quarter compared to the previous year was due to the pandemic and ongoing containment measures imposed by the authorities.

Although all businesses have resumed operations in July 2020, the recovery rates of the Group’s various business segments were varied due to the different adaptation and compliance requirements imposed by the authorities for the various economic sectors," Sunway said in a statement.

For the nine-months ended Sept 30, 2020 (9MFY20), the group's net profit declined 64% to RM204.41 million from RM566.32 million in 9MFY19, while revenue sank 25% to RM2.56 billion from RM3.43 billion.

“In view of the current resurgence in coronavirus infections, the group will continue with its prudent business strategy and stay resilient to face the challenges ahead. 

"Barring any unforeseen circumstances, the group expects to achieve a satisfactory financial performance in the last quarter of 2020,” said Sunway Group chief financial officer Chong Chang Choong.

Sunway shares rose 2.26% or three sen to RM1.36 yesterday, giving it a market capitalisation of RM6.71 billion. It saw 1.16 million shares done.

Get the latest news @ www.EdgeProp.my

Click here for more property stories.