Sunway Bhd recorded a revenue of RM5,410.3 million and profit after tax and minority interest (“PATMI”) of RM659.0 million for the current 12-month period ended 31 December 2018 compared to revenue of RM5,239.3 million and PATMI of RM620.6 million for the corresponding period of the previous financial year.
The increase in revenue of 3.3% was due to higher contributions from most business segments, while PATMI was higher by 6.2% mainly due to higher contributions from the property investment segment and the Group’s treasury operations.
The higher PATMI was recorded despite the adoption of MFRS 15. With the adoption of MFRS 15, recognition of progressive profits of RM103.7 million from one of the Group’s Singapore and China property development projects, which could have been recognised in the current period under the progressive revenue recognition treatment, has to be deferred until its completion. Excluding the effects of the adoption of MFRS 15 in the current period, the Group’s PATMI would have been up by 22.9% from the previous year.
Sunway declared a second interim cash dividend of 2 sen per share and a share dividend distribution of 1 treasury share for every 100 existing ordinary shares held. Based on the market price of Sunway’s share of RM1.62 as at yesterday’s close, the share dividend distribution is equivalent to approximately 1.62 sen per share.
Total full year dividend, including the first interim cash dividend paid of 3.5 sen per share, is approximately 7.12 sen per share, up from 6 sen per share in 2017.
“We look forward to another good year ahead, supported by the resilience of our businesses. Barring any unforeseen circumstances, we will continue to perform satisfactorily in 2019,” said Chong Chang Choong, Chief Financial Officer of Sunway Bhd.
The Group’s property development segment reported revenue of RM619.6 million and profit before tax of RM158.6 million for the current 12-month period compared to revenue of RM935.3 million and profit before tax of RM235.3 million in the corresponding period of the previous financial year, representing a decrease in revenue of 33.8% and profit before tax of 32.6%.
The performance for the current period was lower mainly due to lower sales and progress billings from local development projects, and the completion and handover of fewer projects in 2018. Profit before tax would have been higher by 11.5% compared to the previous corresponding 12-month period, however, if not for the adoption of MFRS 15.
Sarena Cheah, Managing Director of Sunway Berhad’s property development division remarked, “We closed the year with RM1.88 billion in sales on the back of successful launches both locally and overseas. For FY 2019, we have an exciting line-up of projects to be launched with a total gross development value (GDV) of RM2.0 billion. Sunway Velocity TWO Tower B, Sunway Avila and Sunway Onsen Suites are now open for registration.”
The local launches will mainly be residential properties located within Sunway’s integrated townships or in close proximity to public transportation. In the international market, Sunway will be launching its private condominium project in Clementi, Singapore with an effective GDV of RM1.0 billion.
The property investment segment reported revenue of RM814.8 million and profit before tax of RM291.4 million for the current 12-month period compared to revenue of RM784.2 million and profit before tax of RM255.3 million in the corresponding 12-month period of the previous financial year.
The increase in revenue of 3.9% for the current 12-month period was mainly due to additional contribution from new properties such as Sunway Geo in Sunway South Quay and additional room inventory at The Banjaran Hotsprings Retreat & Spa in Ipoh, as well as higher contribution from the Group’s theme park.
Profit before tax was higher by 14.1%, mainly due to the better performance registered by Sunway Velocity Mall and the Group’s theme park as compared to the previous corresponding period, further boosted by the share of higher fair value gains from revaluation of investment properties and Sunway REIT properties in the current period.
The construction segment recorded revenue of RM1,847.9 million and profit before tax of RM190.1 million for the current 12-month period compared to revenue of RM1,627.7 million and profit before tax of RM187.4 million in the corresponding period of the previous financial year, representing an increase in revenue of 13.5% and profit before tax of 1.4%. The construction outstanding order book stood at RM6.0 billion as at 28 February 2019.
