Tuesday, 28 February 2017

(The Star) Sunway’s FY16 revenue higher at RM4.72bil

PETALING JAYA: Sunway Bhd recorded an increase in revenue to RM4.72bil for the period ended Dec 31, 2016 compared to RM4.45bil in FY15.

The company, with interests ranging from property development to construction and real estate, attributed the increase in revenue to better performance in property development, property investment, trading and manufacturing, healthcare, building materials and treasury operations.

Sunway declared a second interim cash dividend of four sen per share, along with a share dividend distribution of one treasury share for every 100 existing ordinary shares held, translating to an equivalent of 3.14 sen per share.

Total full-year dividends, including the first interim dividend paid of five sen per share, is 12.14 sen per share, up from 11 sen in FY15.

“While the economic environment remains challenging, our robust balance sheet will enable us to capitalise on any opportunities that may arise in such an operating environment,” said Sunway chief financial officer Chong Chang Choong.

The group posted a lower profit before tax of RM859mil in the fourth quarter compared to RM930.4mil a year ago due to lower fair-value gains from the revaluation of investment properties and a share of lower fair-value gains recorded by Sunway REIT.

The group targets to roll out RM2.0bil worth of property in 2017. The property development segment’s unbilled sales as at Dec 31, 2016 was RM1.5bil and will provide earnings visibility for the division over the next two years, it said.

The segment is also well-positioned to actively pursue strategic land banking, having recently acquired a 8.45-acre plot of land directly opposite the group’s RMbil Sunway Velocity development in February.

The property investment segment recorded a revenue of RM692mil and a profit before tax of RM158.7mil last year compared to a revenue of RM638.9mil and profit before tax of RM315.6mil fin FY2015.

Revenue was higher in the current period due to higher rental contributions and better occupancy at the group’s portfolio of investment properties, and an increase in the number of visitors to Sunway Lagoon following the opening of Nickelodeon Lost Lagoon in 2016.

The construction segment reported a revenue of RM1.18bil and a profit before tax of RM134.1mil for the 12-month period ended Dec 31, 2016 compared to a revenue of RM1.22bil and a profit before tax of RM162.7mil in 2015.

The lower revenue was due to lower revenue recognition from local construction projects and higher intra-group eliminations in the current period.