SUNWAY HOLDINGS BERHAD (FINANCIAL RESULTS ANNOUNCEMENT)
MEDIA RELEASE 24 NOVEMBER 2010
Sunway Holdings’ net profit up 2.7 times
Sunway Holdings Berhad maintained its course to achieve a record profit year, recording RM48.5 million net profit in the 3rd quarter of 2010 and a cumulative 9-month net profit of RM 137.0 million.
The Group achieved higher revenue of RM489.0 million as compared to the revenue of RM411.5 million in the previous corresponding quarter ended September 2009.
The net profit reported for the current quarter was 2.7 times higher than the net profit recorded in the previous corresponding quarter ended September 2009, with a 2.6 times increase in basic earnings per share to 8.40 cents for the current quarter ended September 30, 2010, compared to 3.30 cents in the previous corresponding quarter. The cumulative basic earnings per share for the current 9-month period is 23.75 cents.
The construction division continued to be the main contributing segment to the quarter’s earnings with stronger margins recorded by its Singapore precast division, followed by the trading and property development divisions.
The Group expects its construction division to record impressive profits backed by its healthy construction outstanding order book which currently stands at RM2.3 billion.
“During the year, the Group secured new construction orders of approximately RM700 million to date. The government’s commitment as stated in the recent announcement of the Budget 2011 and Economic Transformation Programme (ETP) complemented with the pick-up of private projects will be the key catalyst to the construction industry,” said Mr Yau Kok Seng, Managing Director.
“Our trading arm has leveraged on its increasing regional presence as well as diversified earnings stream to continuously provide the Group with sustainable earnings. This division will continue to be one of the Group’s biggest revenue contributors,” Yau added.
The Group’s trading division has expanded its geographical footprint with presence in 7 different countries, namely Malaysia, Singapore, China, Thailand, Indonesia, India and Australia.
Yau continued, “The Group’s property unbilled sales stands at about RM400 million from existing property development projects, both locally and abroad. Coupled with up-coming launches as well as continuous exploration for new land banks, we expect the property development division to continue to contribute positively to the Group’s earnings.”
The Group made its first foray into the Sri Lanka property market with the signing of a Joint-Venture Agreement with the Dasa Group of Sri Lanka for a RM250 million mixed development project in Colombo. This quarter also saw the launch of the Group’s 3rd property development project in Singapore, being its first private development project, called the Vacanza@East, which has seen impressive take-up rates since its launch.
With main contributions channeled in by construction, property development and trading divisions, the Group expects to record sustainable earnings in the current year, with more than 80% of its profit contribution expected from outside Malaysia.
For more information, please contact:-
Ng Lai Ping
Chief Financial Officer
Sunway Holdings Berhad
Tel: 03-5639 8998
Fax: 03-5639 9866