Sunway registers record high revenue of RM6.14b for FY23

PETALING JAYA: Sunway Bhd posted record high revenue of RM6.14 billion for the financial year ended Dec 31 2023 (FY23).

The group said in a statement yesterday profit before tax (PBT) increased 9%, from RM909.2 million in the previous financial year to RM993.2 million in FY23.

In the fourth quarter (Q4’23), the group’s revenue increased by 22% to RM1.87 billion, attributable to higher contributions from its core segments. PBT rose 18%, from RM296.4 million in Q4’22 to RM350.4 million in Q4’23. The higher PBT was fuelled by the property investment, construction, quarry, trading and manufact-uring operations, which more than offset the lower profit contribution from healthcare and other segments.

The property develop-ment segment posted revenue of RM499.4 million in Q4’23, a growth of 13%.

The better performance was underpinned by higher sales and progress billings from local new and ongoing development projects and the completion and handover of a project. The development profit from one of the group’s property development projects in Singapore is expected to be recognised upon completion and handover of the project in first-half 2024. The accumulated progressive profits for the project amounted to RM108.9 million as at end of December 2023.

The healthcare group’s earnings before interest, taxes, depreciation and amortisation grew 33% in FY23, fuelled by strong operational performance at Sunway Medical Centre (SMC) Sunway City and SMC Velocity. SMC Penang which started operations in November 2022, exceeded expectations and achieved breakeven at the profit after tax level during the current quarter.

The group declared a single-tier second interim dividend of 3.5 sen per ordinary share for the financial year ended Dec 31, 2023. The Dividend Reinvestment Scheme (DRS) will be applied to the entire second interim dividend, in which shareholders may elect to reinvest their entire dividends into new Sunway ordinary shares, in lieu of receiving cash.

For FY23, the group declared a total dividend of 5.5 sen per ordinary share, including the first interim dividend of 2 sen per ordinary share. In addition, it declared a preferential dividend of 5.25% per annum (based on the issue price of RM1 per irredeemable convertible preference share in respect of the financial period from July 1, 2023 to Dec 31, 2023.

Sunway Group president Tan Sri Chew Chee Kin said, “The group continued its strong growth momentum in the final quarter of the year, anchored by stable domestic demand, resilient labour market and improved tourism sector.”

He added that the group is confident about its financial performance for 2024, building from the growth momentum of the previous year.

“The healthcare segment continues to be one of the main growth drivers for the group. Its three operating hospitals are expected to perform well, and their expansion as well as new hospitals will add capacity, catering to the demand for quality healthcare and medical tourism. In particular, SMC Damansara and SMC Ipoh are on track to commence operations in the fourth quarter of 2024 and the first quarter of 2025 respectively, and will provide additional capacity of up to 600 beds,” said Chew.

In the southern region, he added, recent developments including the proposed establishment of the Johor-Singapore Special Economic Zone and the group’s partnership with Equalbase to develop an RM8 billion logistics facility in a first fully carbon-neutral free commercial zone in Sunway City Iskandar Puteri augur well for the township.