Sunway aims 10% growth in revenue for 2018

By LYDIA NATHAN / Pic By AFIF ABD HALIM

SUNWAY Group has targeted a 10% growth in revenue and profit for 2018 which will be derived mainly from its property and healthcare divisions.

Founder and chairman Tan Sri Dr Jeffrey Cheah (picture) said he is positive that the group could achieve improvement in its results this year, despite challenges.

“I see good, clear weather from the storms that are threatening. I will not worry about competition though, all our jobs are secured through open and competitive tenders,” he told reporters after the company’s AGM in Bandar Sunway, Subang Jaya, yesterday.

Jeffrey added that the group currently has about RM6.4 billion worth of jobs that will last for a couple of years.

“With the new government, let them get their act together and I am confident they will roll out more projects soon, while the private sector will also continue building houses and more infrastructure,” he said.

Sunway Proper ty MD Sarena Cheah said some of the launches were earlier delayed due to the 14th General Election, but they are back on track now.

“We guided the launch of RM2 billion in property projects overall and in meeting RM1.3 billion in sales. We are on track and confident in seeing the targets achieved,” she said.

However, Sarena noted that while the property market has been slightly softer, there has been renewed sentiments among homebuyers, as the group’s products are very strong.

“Sunway GEO Lake in South Quay will be launched at the end of this month, and so far we have already garnered very encouraging responses. One of our first major property launches for this year was the Rivercove Residences in Singapore, executive condos that have already been sold out.

“The gross development value was about RM1.9 billion, so this will contribute to the group’s revenue,” she added.

Meanwhile, the healthcare sector is also expected to contribute to the growth this year, with planned medical centres in tow.

A daily reported in 2017 that RM1 billion was being injected into the construction of five hospitals that will be located in Ipoh, Kota Damansara, two in Seberang Jaya and one in Cheras.

Jeffrey said the expansion plans did require a fair bit of investment, but the group now is backed by a very strong team. “We want to continue to deliver good services as well as offer state-of-the-art equipment.

Most importantly are the doctors and researches. Once constructed, we will have the biggest healthcare centres in Malaysia,” Jeffrey said.

He added that Sunway is wooing more homegrown talents who are working overseas to come back to Malaysia.

“I am very passionate about healthcare. Lots of Malaysians are very well-trained, but unfortunately, they do not have the centres or ecosystems to work in.

“Now, we have found an inroad. I tell them this is what we are here for — to create those ecosystems so they can practise here in Malaysia,” he added.

Jeffrey said other smaller businesses within the company are also doing well, particularly with building materials offering a relatively low base, thus making the rate of growth stronger.

“About five or six years ago, these businesses were contributing less than RM10 million in revenue. Today, they contribute some RM100 million, registering a strong compounding growth,” he said.