Sunway posts RM48.5m net profit for 3Q

KUALA LUMPUR: Sunway Holdings Bhd has posted a net profit of RM48.5 million for its third quarter ended Sept 30, 2010, slipping marginally from RM48.6 million in the previous quarter on the back of lower revenue, it announced to Bursa Malaysia on Wednesday, Nov 24.

The group had also received RM4.9 million in gains arising from the adoption of the new FRS 139 accounting policy which covered recognition and measurement of financial instruments.

Its revenue fell slightly to RM489.01 million from RM509.17 million posted in the last quarter.

However, its pre-tax profit rose inched up to RM61 million from RM59.2 million due to higher contribution from its construction division.

No comparison with the previous corresponding quarter was available as the group had moved its financial year end to Dec 31 in the last financial year.

Year-to-date, the group's net profit stood at RM137 million on the back of RM1.49 billion in turnover, with net non-operating income of RM11.8 million arising from the gains of adoption of FRS 139, a gain on disposal of RM13.4 million arising from the sale of its only hotel asset, as well as net provisions made for impairment losses on its non-core assets totaling RM9.5 million.

Sunway expected its construction division, one of the key drivers of its performance, to record "impressive profits" underpinned by its outstanding order book valued at RM2.3 billion, with 60% of it from contracts abroad.

"The group also expects sustainable activity in the local construction scene in the next few years with the pick-up in private development activities as well as from the recent announcement of the Budget 2011 and Economic Transformation Programme (ETP)," it said.

Meanwhile, its property development division has unbilled sales of RM400 million from its current property projects, and is expected to contribute to its group earnings in the current and next financial year with new launches in the pipeline.

"With increasing regional presence, the group also expects its trading and manufacturing arm to record steady growth in the coming years and to continue to be one of its biggest revenue contributors," it said.