Sunsuria posts lower first-half earnings as project completions weigh on revenue

PETALING JAYA (May 26): Sunsuria Bhd reported lower revenue and earnings for the first half of its financial year ended March 31, as the completion of several development projects reduced progressive recognition from the property development division. Meanwhile, ongoing project progress, and recurring income contributions and the KL City Gateway acquisition provided additional development pipeline and recurring-income exposure.

Profit before tax (PBT) for the quarter eased marginally to RM14.04 million from RM14.16 million in the same period a year earlier, while revenue declined 4.2% to RM120.61 million from RM125.93 million, according to the group's Bursa Malaysia filing yesterday. Net profit attributable to shareholders fell to RM5.69 million from RM8.10 million previously, with the variance reflecting a higher effective tax rate in the current period.

On a quarter-on-quarter basis, performance improved meaningfully. Revenue rose RM2.57 million from RM118.04 million in the preceding quarter ended Dec 31, 2025, whilst PBT surged 88% to RM14.04 million from RM7.47 million, driven by an improved project mix and higher gross profit margin.

Completed projects weigh on year-on-year comparison

The year-on-year revenue decline was principally due to the completion of Bangsar Hill Park Verdura, Sunsuria Forum Corporate Suites and Bangsar Hill Park Block A, all in the Klang Valley — the last of which was completed in November 2025 and handed over in January. 

These completions reduced progressive recognition from the property development division, which remained the group's dominant earnings contributor with segment PBT of RM44.35 million for the six months, against RM54.07 million in the corresponding period.

The shortfall was partially offset by higher recognition from ongoing developments including Bangsar Hill Park Talisa, Sunsuria Kejora Business Park — Semi-D Industrial Phase 1, and Sunsuria City The Chapter as construction and sales progressed. Higher revenue was also recorded from the education division, driven by increased student enrolments at Concord College International School.

Forum Mall begins contributing to recurring income

The property investment division, which encompasses Sunsuria Forum Mall, commenced operations in December 2025 and began contributing to group revenue. The group said the division incurred higher operating and financing costs during the period as the mall progressed through its tenancy and operational ramp-up phase.

First-half financials and balance sheet

For the six months ended March 31, group revenue declined 16.1% to RM238.65 million from RM284.31 million, while PBT fell 42.4% to RM21.51 million from RM37.35 million, broadly reflecting the same project-completion factors. Net cash from operating activities improved to RM35.76 million from RM27.25 million a year earlier.

Total borrowings as at March 31 stood at RM791.63 million, comprising RM556.54 million in non-current and RM235.09 million in current borrowings, and including RM93 million of Islamic commercial papers issued during the period. 

Net assets per share edged up to RM1.21 from RM1.20 at end-September 2025. No dividend was declared for the period.

KL City Gateway acquisition expands city-centre pipeline

The most significant post-quarter development was the completion on April 10, of Sunsuria's acquisition of an additional 41% equity interest in KL City Gateway Sdn Bhd (KLCG) for a cash consideration of RM21.46 million, increasing the group's stake to 61% and bringing KLCG into consolidation as a subsidiary. 

KLCG is undertaking a 9.66-acre integrated transit-oriented development in Kuala Lumpur city centre, with Phase 1 carrying an estimated gross development value of approximately RM2.75 billion, which the group said is expected to contribute positively to earnings over the medium to long term.

Outlook measured amid cost pressures

The group said it will continue taking a measured approach to project launches and execution. Sunsuria is monitoring cost pressures arising from ongoing conflicts in the Middle East, which the filing noted have contributed to rising inflationary pressures on construction materials and operational costs.

..........

EdgeProp brings you another month of data-driven insights, exclusive interviews, and market commentaries. Subscribe now for your free copy!