Sunway posts record high revenue for FY23

PETALING JAYA: Sunway Bhd is confident of its financial performance for 2024 as it builds from the growth momentum of the previous year, anticipating its leisure, hospitality and healthcare segments to benefit from the improvement in in-bound leisure and medical-related tourism.

On top of that, Sunway said its healthcare segment will continue to be one of its main growth drivers with its three operating hospitals expected to perform well, further supported by the expansion of existing capacity and new hospitals to cater to increasing demand for quality healthcare and medical tourism.

The group saw its net profit surge 29.8% year-on-year (y-o-y) to RM265.9mil for the fourth quarter ended Dec 31, 2023 (4Q23), driven by a 22% y-o-y growth in revenue to RM1.87bil.

Sunway attributed the higher profit for the quarter to increased contribution from its property investment, construction, quarry, trading and manufacturing segments, which has more than offset the lower profit contribution from property development, healthcare and other divisions.

For the full year of 2023, the group posted a record high turnover of RM6.14bil since its listing in 2011 – representing an 18% y-o-y increase – which in turn led to a 10.3% y-o-y rise in earnings to RM737.8mil.

It reported that the positive result had its contribution from most business segments with the exception of healthcare, which saw a 13.6% lower net profit of RM152.7mil.

The group commented that the share of net profit for the previous financial year 2022 included the share of a one-off net remeasurement gain of leases as of RM36.7mil in relation to the early termination of rental arrangement of Tower A and B occupied by Sunway Medical Centre.

The group declared a single-tier second interim dividend of 3.50 sen per ordinary share for 4Q23.

This brings its total dividend to 5.50 sen per share, including the first interim dividend of two sen.

Sunway president Tan Sri Chew Chee Kin said its performance in 4Q23 has been anchored by a momentum generated by stable domestic demand, a resilient labour market and an improved tourism sector.

Looking at the group’s healthcare sector, he commented: “Sunway Medical Centre (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.”