Sunway Bhd posts profit before tax increase of 165% in Q3 FY2022

INDUSTRIAL conglomerate Sunway Bhd has announced its third quarter financial results for the financial year ending Dec 31, 2022 (Q3 FY2022), registering a strong financial performance for the quarter ending Sept 30, 2022. 

Revenue in Q3 FY2022 rose 48.3% year-on-year (yoy) from RM856.9 mil a year ago to RM1,270.5 mil, on the back of higher revenue recorded from all of the group’s business segments.  

On the other hand, profit before tax jumped 165.2% yoy in the current quarter, from RM84.4 mil to RM223.8 mil. 

The improved performance from property investment, construction, trading and manufacturing and healthcare segments contributed substantially to Sunway’s improved performance. 

However, lower profit contributions were noted in the property development sector and other segments (which were not specified).

Pursuant to the Malaysian Financial Reporting Standard (MFRS) 15: Revenue from Contracts with Customers, development profit from two of the group’s ongoing property development projects in Singapore will only be recognised upon completion and handover of the projects, which is expected to be in FY2023. 

The accumulated profit of these projects amounted to RM101.7 mil, of which RM14.2 mil was recorded in the current quarter but was not recognised. Sunway did not explain why. 

Commenting on Sunway’s Q3 FY2022 results, Sunway Group chief financial officer Chong Chang Choong said: “We are pleased that the group’s strong financial performance was sustained in the current quarter, supported by robust economic rebound due to full reopening of the economy and low base from a negative economic growth in the previous year.”

Chong Chang Choong (Photo credit: The Star)

He added: “The improving domestic economic outlook augurs well for the group. With the anticipation of normalisation of international travel, the group expects its leisure, hospitality and healthcare segments to benefit from the improving inbound tourism sector. 

“However, the recent monetary tightening policy undertaken by Bank Negara Malaysia (BNM) may affect (the) sentiment of home purchasers; (even so), its consequential impact may be mitigated by the sustained economic recovery.”

Choong was referring to BNM’s Nov 3 hike of the overnight policy rate (OPR) by 25 basis points to 2.75%, its fourth consecutive rate hike since May. The move increases the cost of borrowing.

He concluded: “Barring any unforeseen circumstances, the group is confident that its financial performance for the financial year 2022 will remain satisfactory.”

Established in 1974, Sunway Group is one of Southeast Asia’s leading conglomerates with 13 business divisions across more than 50 locations primarily in Asia.

Its 16,000-strong team is committed to sustainable development and socio-economic progress through its diverse businesses, including core interests in real estate, construction, education, healthcare, retail and hospitality. – Nov 26, 2022


Main photo credit: Bernama

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