KUALA LUMPUR (Feb 21): Sunway Bhd closed its fourth quarter for the financial year 2023 (4QFY2023) with a 29.8% year-on-year jump in net profit to RM265.9 million and its highest annual revenue of RM6.14 billion since the group's listing in 2011.

The group made RM61.08 million more net profit in its 4QFY2023 that spanned the months of September to December last year, compared with the RM204.82 million it made in the corresponding quarter of 2022, supported mainly by improved contributions from its property investment, construction, trading and manufacturing, and quarry businesses.

The diversified group, which is also in property development and healthcare, reported an earnings per share of 4.39 sen, up from 3.49 sen in 4QFY2022, its bourse filing showed.

Quarterly revenue expanded by 22% to RM1.87 billion from RM1.53 billion, attributed to higher contributions from most business segments. Notable revenue growths were recorded by its construction (up 83.1% to RM532.81 million from RM291.01 million), property development (up 12.8% to RM499.37 million from RM442.65 million), property investment (up 11.1% to RM256.26 million from RM230.66 million), and trading and manufacturing (up 11.4% to RM260.11 million from RM233.45 million) segments.

It declared a second interim dividend of 3.5 sen per share for FY2023, bringing its payout for the year to 5.5 sen, its bourse filing showed.

For the full FY2023, the group's net profit rose 10.3% to RM737.8 million from RM668.5 million in FY2022, as revenue climbed 18% to its record high of RM6.14 billion from RM5.2 billion in FY2022.

The group noted that its healthcare segment's earnings before interest, taxes, depreciation and amortisation (EBITDA) recorded 33% growth in FY2023, fueled by the strong operational performance of Sunway Medical Centre (SMC) Sunway City and Velocity. SMC Penang, which began operations in November 2022, also exceeded expectations and achieved breakeven at the profit after tax level in 4QFY2023, it said.

In a statement, Sunway Group president Tan Sri Chew Chee Kin expressed confidence in the group's financial performance for 2024, citing strong growth momentum in the final quarter of 2023.

He said the group's healthcare segment will continue to be one of its main growth drivers, with its three hospitals expected to perform well. The group is expanding these hospitals and adding new ones to increase the group's capacity to cater to the demand for quality healthcare and medical tourism.

"In particular, SMC Damansara and SMC Ipoh are on track to commence operations in the fourth quarter of 2024 and the first quarter of 2025, respectively, and will provide additional capacity of up to 600 beds," Chew said.

Chew also noted that positive developments in the southern region, such as the proposed Johor-Singapore Special Economic Zone (JS-SEZ) and the group's collaboration with the Singapore-based property management company Equalbase to create an RM8 billion logistics facility in the first fully carbon-neutral free commercial zone in Sunway City Iskandar Puteri, augur well for the township there.

Shares in Sunway Group closed two sen or 0.73% lower at RM2.71 on Wednesday, giving the group a market capitalisation of RM15 billion.