KUALA LUMPUR (Aug 28): Sunway Bhd (KL:SUNWAY) posted a net profit of RM270.47 million for the second quarter ended June 30, 2024 (2QFY2024), up 80.4% from RM149.43 million a year earlier, on stronger operating performance across all business segments, coupled with a gain of RM62.4 million from the redemption of an investment and share of gain of RM27 million from the newly acquired investment properties of an associate.

This led to a higher earnings per share of 4.11 sen for 2QFY2024 compared with 2.54 sen for 2QFY2023.

Revenue for the quarter rose 7.6% to RM1.58 billion from RM1.47 billion a year earlier, on better performance from all business segments except the construction segment, its filing with the stock exchange showed.

Sunway said the construction segment reported revenue of RM381.1 million, down 5.7% from RM404.1 million in 2QFY2023, mainly due to lower contribution from its overseas and sustainable energy projects. However, profit before tax was higher mainly due to higher profit margins from its newer construction projects in the current quarter, it added.

Sunway declared a first interim dividend of two sen per share for the financial year ending Dec 31, 2024 (FY2024), payable on Oct 10, and a preferential dividend of 5.25% per year (based on the issue price of RM1) per irredeemable convertible preference share in respect of the financial period from Jan 1 to June 30, 2024.

For the cumulative six-month period (1HFY2024), Sunway’s net profit grew 51.8% to RM442.7 million from RM291.57 million a year earlier, while revenue increased 9.8% to RM3 billion from RM2.73 billion, due to higher contributions from all business segments.

"We remain positive on the prospects for the property development, healthcare, and construction segments as well as other business segments for the remaining part of the year,” said Sunway Group president Tan Sri Dr Chew Chee Kin in a separate statement on Wednesday.

He said the healthcare segment is focused on expanding bed capacity across its three existing hospitals, as well as the two new hospitals set to open in the fourth quarter of 2024 (4Q2024) and 1Q2025 respectively, to meet the growing demand for quality healthcare services from domestic patients and healthcare tourists.

In addition, the property market in the Southern region shows strong potential. The establishment of the Johor-Singapore Special Economic Zone (JS-SEZ), along with improved infrastructure and enhanced connectivity through the forthcoming Rapid Transit System, is expected to attract significant foreign and domestic investments into Johor, he said.

“The upcoming developments in Sunway City Iskandar Puteri (SCIP), including Sunway 103° Logistic Hub, Sunway Circuit, Puteri Hill, integrated healthcare facilities, tertiary education institution and Equalbase’s data centre will further complement SCIP’s vibrant ecosystem, elevating its appeal in attracting high-income professionals and global corporations looking to establish regional headquarters,” said Chew.

On the construction segment, Chew said the strong flow of new contracts has been encouraging. The segment exceeded its initial order book replenishment target of between RM2.5 billion and RM3.0 billion, after securing RM3.5 billion worth of orders up to August 2024.

“We have revised the order book replenishment target to a higher level of between RM4.0 billion and RM5.0 billion for 2024,” he added.

Sunway shares closed down 17 sen or 4.17% at RM3.91 on Wednesday, giving it a market capitalisation of RM22.29 billion. The stock has risen 81.86% so far this year.