Sunsuria 3Q net profit up 27% on higher contribution from property development business

KUALA LUMPUR (Aug 26): Sunsuria Bhd’s net profit rose 27.12% to RM3.57 million in the third quarter ended June 30, 2021 (3QFY21), from RM2.81 million a year ago, underpinned by better profit contribution from its property development business.  

Revenue tripled to RM62.21 million from RM20.20 million in 3QFY20, the property developer’ bourse filing showed.  

The improved revenue, the group said, was driven by its ongoing property developments — Monet Springtime, Monet Garden Townhouses and Villa, Giverny Walk dual frontage shop offices and Tangerine Suites at Sunsuria City, as well as Sunsuria Forum @ 7th Avenue (phase two) at Setia Alam and Block D Verdura at Bangsar Hill Park at Lorong Maarof in Bangsar.

The group said revenue during the quarter was affected by the total stoppage of construction activities under the movement control order (MCO) from March 18, 2020 until the gradual approval for work to resume at Sunsuria’s various project sites effective June 10, 2020.

On a quarter-on-quarter basis, the group’s revenue was marginally lower from RM62.95 million in the preceding quarter. Meanwhile, net profit fell 30.21% from RM5.12 million in 2QFY21, due to a loss on disposal of a vacant freehold agricultural land of RM2.85 million.

For the nine months ended June 30, Sunsuria’s net profit fell 33.14% to RM14.01 million, from RM20.96 million in the previous year’s corresponding period, mainly due to operating expenses from the Bangsar Hill Park project.

“While the acquisition of Bangsar Hill Park that was completed in February 2021 contributed to revenue for 3QFY21, the contribution from the project is marginal as the project is still at the preliminary stage of development,” the group said. The project has an estimated gross development value of RM3.01 billion.

Nine-month revenue rose 27.49% to RM173.10 million, from RM135.78 million previously.

Looking forward, while the pandemic continues to pose a challenge on the economic front, Sunsuria executive chairman Tan Sri Ter Leong Yap said the government’s national recovery plan has provided some respite, allowing the housing development sector to operate under Phases One and Two effective end-July.

“We are also cautiously optimistic on Malaysia’s increasing vaccination coverage, which will enable a gradual reopening of the economy in the months to come,” he added.

Sunsuria’s share price closed up 0.5 sen or 1.09% at 46.5 sen yesterday, for a market capitalisation of RM417 million.

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