KUALA LUMPUR (April 1) : Sunway Bhd’s net profit rose 5% to RM193.07 million in the fourth quarter ended Dec 31, 2020, from RM183.47 million a year earlier, thanks to the recognition of a balance of development profits of RM182.50 million.

The balance of the development profits on one of the group’s Singapore and China property development projects was deferred due to the adoption of MFRS 15, the group said..

Earnings per share, however, fell slightly to 3.75 sen from 3.79 sen, according to the group's filing with Bursa Malaysia.

Quarterly revenue declined 6% to RM1.28 billion, from RM1.35 billion in the previous year’s corresponding quarter, underpinned by lower contribution from the group's property development, property investment and quarry segments.

On a quarter-on-quarter basis, Sunway’s net profit rose 45% from RM132.83 million in the preceding quarter, while revenue increased 24% from RM1.03 billion.

Sunway declared a first interim dividend of 1.5 sen for the financial year ended Dec 31, 2020 (FY20), to be paid on April 28.

For the full year, Sunway’s net profit dropped 49% to RM359.60 million from RM709.17 million in FY19, while revenue fell 20% to RM3.83 billion from RM4.78 billion, as most of its business segments registered lower contributions except for healthcare.

Commenting on the group’s financial performance yesterday, Sunway said while most of its business segments continued to recover from the fallout of the pandemic, its hospitality and leisure businesses under the property investment segment continued to be adversely impacted in the current quarter, due to the resurgence of Covid-19 cases and the reinstatement of the Conditional Movement Control Order, which called for the closure of the theme park operations and more stringent social distancing requirements.

Group chief financial officer Chong Chang Choong said in a statement that the group expects the financial performance of 2021 to be satisfactory.

“The financial performance of the group’s business segments, especially leisure and hospitality businesses, is expected to continue to be impacted by the pandemic in the first half of 2021.

“However, the group is cautiously optimistic that with the progressive rollout of the mass vaccination programme by the government, the local economy will begin to recover steadily in the second half of the year,” he said.

Shares of Sunway closed unchanged to RM1.70 yesterday, giving it a market capitalisation of RM8.39 billion.

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