Sunway 2Q net profit rises 17%; RM9.1b gain lifts 1H earnings

PETALING JAYA (Aug 27): Sunway Bhd’s net profit attributable to shareholders rose 16.7% year on year to RM318.59 million for the second quarter ended June 30, 2026 (2QFY2026), as higher contributions from most business segments lifted revenue.

In a Bursa Malaysia filing on Thursday (Aug 27), the group said revenue increased 13.4% to RM2.91 billion from RM2.56 billion a year earlier, while profit before tax (PBT) grew 25.3% to RM496.23 million from RM395.97 million.

Earnings per share rose to 4.71 sen from 4.07 sen.

Sunway declared a first interim single-tier dividend of three sen per share for the six months ended June 30, 2026, compared with four sen for the corresponding period a year earlier.

The dividend will be paid on Oct 15, with an ex-date of Sept 17 and entitlement date of Sept 18. The quarterly report confirms the Sept 18 entitlement date and Oct 15 payment date.

The property development segment recorded a 15.2% increase in quarterly revenue to RM405 million from RM351.4 million, while PBT climbed 57.2% to RM82 million from RM52.2 million.

Sunway attributed the improvement mainly to higher progress billings from ongoing local development projects and contributions from MCL Group, now rebranded as Sunway MCL. PBT was also boosted by the finalisation of accounts for a completed project.

For the first half, the segment launched projects with a combined gross development value (GDV) of RM2.7 billion and achieved property sales of RM2.3 billion.

The group also secured two strategic land parcels at River Valley Green and Bayshore Drive in Singapore, with an estimated combined GDV of about RM17 billion, or RM6.4 billion on an effective-GDV basis.

Meanwhile, property investment revenue rose 18.2% to RM263.4 million from RM223 million, supported by improved contributions from its leisure division and the newly acquired Sunway Wangsa Mall, as well as better operating performance at Sunway Velocity Mall.

Property investment PBT increased 2.5% to RM78.2 million from RM76.3 million. Sunway said that excluding an RM11 million fair-value gain on investment properties recognised in the corresponding quarter last year, underlying PBT increased 19.8%.

Construction revenue, however, fell 38.6% to RM779.3 million from RM1.27 billion, while PBT eased 1.3% to RM133.1 million from RM134.8 million.

Sunway said revenue in the corresponding quarter last year had benefited from accelerated progress on several data centre projects that had reached peak construction stages. Current-quarter PBT was supported by profit recalibration following the finalisation of accounts for several completed projects.

The construction segment had secured RM6.9 billion in new orders year to date, exceeding its initial full-year replenishment target of RM6 billion.

Its outstanding order book stood at a record RM10.5 billion as at Aug 21.

In view of the strong year-to-date order wins, Sunway raised its full-year order-book replenishment target to between RM7 billion and RM9 billion.

RM9.1b healthcare gain lifts first-half earnings

For the six months ended June 30, group revenue rose 10.8% to RM5.46 billion from RM4.93 billion, while net profit attributable to shareholders surged to RM9.73 billion from RM463.51 million.

The first-half result included a RM9.0958 billion net gain arising from the remeasurement of Sunway’s investment in Sunway Healthcare Holdings Bhd (SHH) to fair value upon its listing and reclassification as a subsidiary.

Excluding RM9.1 billion in one-off gains from the revaluation of SHH, Sunway said the year-on-year improvement in first-half PBT was RM258.5 million, or 36.9%.

SHH was equity-accounted up to March 17 and consolidated as a subsidiary from March 18 following completion of its listing.

The quarterly report said the healthcare segment’s first-half results comprised Sunway’s 84% share of net profit or loss on an equity-accounted basis up to March 17, followed by consolidation from March 18.

Accordingly, the healthcare segment’s quarterly results are not directly comparable with the corresponding period a year earlier, when Sunway’s 84% interest was equity-accounted as a joint venture.

In 2QFY2026, healthcare recorded revenue of RM671.8 million and PBT of RM99.9 million.

Sunway said improved operating performance across its hospital network, higher patient census and the progressive ramp-up of newer hospitals contributed to a 43% year-on-year increase in healthcare earnings before interest, tax, depreciation and amortisation.

Licensed beds increased to 1,855 as at end-June from 1,777 at end-2025, with a further 217 beds pending licensing.

Sunway said it remains cautiously optimistic about its prospects for FY2026, citing its diversified business model, robust unbilled sales, continued expansion of healthcare bed capacity, record construction order book and resilient recurring-income businesses.

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