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Sunway 1Q net profit shrinks, lower contributions from property segments

PETALING JAYA (May 25): Sunway Bhd’s net profit for the first quarter ended March 31, 2021 dropped 6% to RM58.45 million from RM62.4 million from the same quarter in the previous year, due to lower contributions from its property and property investment segments.

Sunway’s revenue increased 4.7% to close at RM1,016.7 million from RM971.4 million. The higher revenue in 1Q2021 was driven by higher contributions from most business segments

Profit before tax contracted by 6.7% to RM87.2 million from RM93.5 million in 1Q2020.

Nevertheless, Sunway has recently launched two executive condominium projects in Singapore, which have been well received by the market. In accordance with Malaysian Financial Reporting Standard (MFRS) 15, its development profits will only be recognised upon completion and handover of the projects. 

In a media statement on May 25, the company said the majority of the business segments continued to recover from the fallout of the pandemic despite the re-implementation of Movement Control Order 2.0 from Jan 13 to March 4, 2021. 

The hospitality and leisure businesses under the property investment segment continued to be adversely impacted due to closure of the theme park operations, more stringent social distancing requirements and restrictions in interstate travels, said Sunway. 

Having said so, Sunway Group Chief Financial Officer Chong Chang Choong noted that the other business segments of the group remained resilient and able to continue to perform and deliver satisfactory results.

“With the progressive rollout of the mass vaccination programme over the short to medium term, the group is hopeful that the pandemic may be contained. This will augur well for the group going forward,” he added.

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