Sunsuria Berhad's (Sunsuria) 4QFY24 net profit came in stronger than expected at RM10.0m (>100% YoY, +9.0% QoQ) mainly due to higher-than-expected contributions from its property development segment from projects such as Tower A, C, D and E in Bangsar Hill Park, Seni Residences in Sunsuria City and Sunsuria Kejora Business Park's Semi-D Industrial (Phase 1) in Puncak Alam. In FY24, the opening of Concord College International School in September 2024 also contributed to its revenue, complementing revenue contribution from the property division. As such, FY24 net profit of RM24.9m (89.2% YoY) exceeded our estimates by 23% due to stronger billings and margins achieved. Group unbilled sales stood at RM0.89bn as at 4QFY24, from RM1.02bn a quarter ago. All told, we maintain our earnings estimates and keep our Trading Buy with TP unchanged at RM0.55, pegged at 0.5x to book value.

• FY24 pre-tax profit rose 72% YoY to RM79.3m, while FY24 revenue was higher by 24% YoY to RM627.8m, primarily due to higher revenue from property development division, which was derived from stronger progressive profit recognition from ongoing development projects. Among the ongoing projects are Tower A, C, D and E in Bangsar Hill Park, Seni Residences in Sunsuria City and Sunsuria Kejora Business Park's Semi-D Industrial (Phase 1) in Puncak Alam. The Group also started generating revenue from its education arm, following the commencement of Concord College International School's (CCIS) operations in Sunsuria City in September 2024. To recap, it also secured the exclusive rights from Concord College International Limited to establish CCIS campuses in Malaysia, Singapore, Taiwan, Hong Kong, Japan, Republic of Korea, India and other regions across Southeast and South Asia.
• Remaining total GDV of RM8bn. Sunsuria currently has 2,052 acres of undeveloped land with potential gross development value (GDV) of RM8bn which we estimate could take at least 8-10 years to develop. About RM6bn GDV is mainly from Sunsuria City @ Salak Tinggi which has already completed projects with combined GDV of RM1.4bn to-date. On-going residential development projects, among others, include Tower A, D and E of Bangsar Hill Park, Seni Residences and multi-facility serviced apartment Tangerine Suites at Sunsuria City township and integrated mixed development Forum 2 at Setia Alam. Bangsar Hill Park Development Sdn Bhd unveiled Talisa, the second phase of its Bangsar Hill Park development early this year. Talisa has a GDV of RM1.1bn and comprises 802 units across two blocks (Blocks B and C). Block B is a 57-storey tower with 410 units while Block C is a 55-storey tower with 392 units.

Source: PublicInvest Research - 26 Nov 2024