Update Sunway 4Q net profit surges 677% to RM1.14b, declares 5 sen dividend

by **Cals** Fri 28 Feb 2014, 01:29

Update Sunway 4Q net profit surges 677% to RM1.14b, declares 5 sen dividend

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 27 February 2014 18:07

KUALA LUMPUR (Feb 27): Sunway Bhd posted a net profit of RM1.14 billion for the fourth quarter to December 2013, up by 677% compared to RM146.56 million in the fourth quarter of 2012.

Revenue recorded was RM1.34 billion, compared to revenue of RM1.24 billion in previous year's corresponding quarter.

Sunway declared an interim dividend of 5 sen per share, bringing total dividends for FY2013 to 10 sen.

For the full year of 2013, the company reported net profit increasing to RM1.50 billion from RM438.83 million in the previous financial year. Annual revenue was RM4.73 billion compared to RM4.13 billion recorded in 2012.

“The group’s strong financial results were due to improvement in performance recorded by all the business divisions, with the two core businesses of property and construction leading the way, fair valuation gains from investment properties and financial effects from the adoption of the new FRS 10,” said Sunway in a press statement.

Reviewing the results in further detail, Sunway said for the full FY2013, the group’s core net profit surged 38% to RM482.7 million from RM350.7 million in 2012.

The Group’s core net profit for the fourth quarter was RM157.5 million compared to RM114.2 million in the previous corresponding quarter.

“In addition to core net profit, there were fair valuation gains, impact from the new financial reporting standard FRS 10 and other non-recurring items amounting to RM1,017.8 million.”

The new FRS 10, which took effect from 1 January 2013, required the group to consolidate the financial position and financial results of Sunway Real Estate Investment Trust and the adjustments were to be made retrospectively.

Sunway said it has a record construction order book of close to RM4 billion and unbilled property sales of RM2.4 billion which will underpin its performance going forward.

On outlook, it said: “In 2014, we are also looking forward to our maiden launch in Sunway Iskandar, a RM30 billion integrated township development in Medini Iskandar.

“The Citrine, which is the first phase of Sunway Iskandar, is expected to be launched in Q2 2014 with a Gross Development Value (GDV) of RM300 million.”

It expects its 34.5% associate Sunway REIT to continue to perform well and its construction business to benefit from the buoyant construction sector.