Sunway 1Q net profit down 5.6% to RM64.45m

KUALA LUMPUR (May 29): Sunway Bhd net profit for the first quarter ended March 31, 2012 dipped 5.6% to RM64.45 million from RM68.38 million a year earlier, due mainly to higher interest expense incurred following the restructuring of its borrowings.

The company said on Tuesday that its revenue for the quarter was 2.23% lower at RM814.76 million from RM833.71 million in 2011, due mainly to lower property sales and seasonality factors.

Earnings per share was 4.99 sen compared to 5.28 sen, while net assets per share was 5.28 sen.

On its prospects, Sunway said that in view of the uncertain global economic outlook due to sovereign debt crisis in Europe and the lower economic growth in Malaysia, the company expects new property sales to moderate in the short to medium term.

The property market sentiment is also dampened by the stricter lending guidelines rolled-out by Bank Negara Malaysia recently, it said.

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