Sunway raises property sales target to RM1.7bil
PETALING JAYA: Sunway Bhd is raising its 2018 property sales target to RM1.7bil after having exceeded its earlier aim of RM1.3bil as of the third quarter ended Sept 30.
Sunway property development division managing director Sarena Cheah said the group recorded strong property sales as a result of successful launches after June this year.
“The property development segment has exceeded its sales target of RM1.3bil set for the year, recording total sales of RM1.6bil as of the current quarter on the back of the successful launches in the second half of 2018,” Cheah said in a statement.
“We are now revising our sales target for 2018 to RM1.7bil,” she added.
Overall, Sunway posted stable net profit at RM145.31mil for the third quarter ended Sept 30 compared with RM145mil in the corresponding quarter last year.
During the quarter under review, the construction and property group saw its revenue increase 12.6% to RM1.44bil from RM1.28bil in the previous corresponding quarter, thanks to higher contributions from most of its business segments.
However, its earnings per share (EPS) fell to 2.99 sen from 3.04 sen previously.
For the quarter under review, Sunway’s pre-tax profit rose 2.7% to RM194mil from RM188.9mil previously as a result of higher contributions from the property development and construction segments.
The group said its pre-tax profit would have been higher by 32.9% compared with the corresponding quarter last year if not for the adoption of MFRS 15 on one of the group’s Singapore and China property development projects.
“The progressive profits of RM57.1mil from these projects, which could have been recognised in the current quarter under the progressive revenue recognition treatment, has to be deferred accordingly,” Sunway explained.
The group noted that its property development segment saw revenue increase 55.1% year-on-year (y-o-y), while pre-tax profit rose 30.5% y-o-y during the quarter in review, due to higher sales and progress billings from local development projects, boosted by the completion and handover of a local development project.
Its construction segment saw revenue grew 11.7% y-o-y, while pretax profit increased 10.7% y-o-y during the quarter in review.