Sunway posts Rm78.29mil net profit for first quarter

PETALING JAYA: Sunway Bhd began its financial year of 2020 (FY20) with a 42.6% year-on-year (y-o-y) drop in net profit in the first quarter.

It said in a stock exchange filing yesterday that it recorded a net profit of Rm78.29mil as compared to Rm136.41mil in the same quarter a year earlier.

The drop in profitability was a result of the lower contributions from most of Sunway’s business segments except property development and quarry.

Meanwhile, the group’s revenue in the January-march 2020 period also declined by 13.5% y-o-y to Rm971.44mil, down from Rm1.12bil a year earlier.

“Revenue was lower in the current quarter due to lower contributions from most business segments except property development, quarry and healthcare,” it said.

For context, the construction segment witnessed the biggest drop in revenue by 37% y-o-y, followed by property investment (31.7%) as well as trading and manufacturing (22.7%).

In the first quarter of FY20, Sunway’s earnings per share were 1.35 sen. In the same quarter of the previous financial year, the earnings per share were higher at 2.70 sen.

Sunway did not declare a dividend for the first quarter under review. The group said its performance is expected to be adversely impacted by the Covid-19 pandemic, if it is not brought under control.

“To mitigate the consequences, the group has activated its Business Continuity Plan which incorporated our digital platform to manage the operational disruptions caused by the pandemic and the imposition of the Movement Control Order.

“In addition, the group has implemented several cost saving measures including a recruitment freeze. The group will continue to monitor the situation and will take appropriate measures if warranted,” it said.