Sunway’s net profit up 1.7% in 2Q18

Sunway Bhd’s net profit rose 1.7% year-on-year (YoY) to RM199.44 million in the second quarter ended June 30, 2018 (2Q18) as revenue climbed 4% YoY to RM1.29 billion.

In an exchange filing on Tuesday, the construction and property group noted the improved profit was mainly due to lower share of minority interest profit for some local property development projects in the current quarter, while the higher revenue was primarily due to higher contribution from the construction and trading and manufacturing segments.

The group declared a first interim dividend of 3.5 sen to be paid on Oct 18, 2018.

The property development segment’s revenue and profit before tax fell 67.2% and 38% respectively on lower progress billings from local development projects, though the construction segment’s revenue and profit before tax rose 44.6% and 7.2% respectively, on higher progress billings from local construction projects and lower intra-group eliminations.

The trading and manufacturing segment’s revenue and profit before tax climbed 26.7% and 11.7% respectively as a result of recovery in market conditions, which helped drive higher sales both locally and overseas. — TMR