Sunway’s revenue for financial year 2016 rises to RM4.72bil

PETALING JAYA: Sunway Bhd recorded an increase in revenue to RM4.72bil for the period ended Dec 31, 2016 compared to RM4.45bil in the corresponding period last year.

The company, with interest ranging from property development to construction and real estate, attributed the increase in revenue to better performance in property development, property investment, trading and manufacturing, healthcare, building materials and treasury operations.

Sunway has declared a second interim cash dividend of four sen per share, along with a share dividend distribution of one treasury share for every 100 existing ordinary shares held, translating to an equivalent of 3.14 sen per share.

Total full-year dividends, including the first interim dividend paid of five sen per share, is 12.14 sen per share, up from 11 sen the previous year.

“While the economic environment remains challenging, our robust balance sheet will enable us to capitalise on any opportunities that may arise in such an operating environment,” said Sunway chief financial officer Chong Chang Choong.

The group posted a lower profit before tax of RM859mil in the fourth quarter compared to RM930.4mil in the corresponding period last year.

However, this was due to lower fair-value gains from the revaluation of investment properties and a share of lower fair-value gains recorded by Sunway REIT.

The group targets to roll out RM2.0bil worth of property in 2017. The property development segment’s unbilled sales as at Dec 31, 2016 was RM1.5bil and will provide earnings visibility for the division over the next two years, it said.

The segment is also well-positioned to actively pursue strategic land banking, having recently acquired a 8.45-acre plot of land directly opposite the group’s RM4.0bil Sunway Velocity development in February.

The property investment segment recorded a revenue of RM692.0mil and a profit before tax of RM158.7mil last year compared to a revenue of RM638.9mil and profit before tax of RM315.6mil for the corresponding 12-month period in 2015.

Revenue was higher in the current period due to higher rental contributions and better occupancy at the group’s portfolio of investment properties, and an increase in the number of visitors to Sunway Lagoon following the opening of Nickelodeon Lost Lagoon in 2016.