Sunway’s FY20 net profit drops to RM360m

SUNWAY Bhd’s net profit slipped to RM359.6 million for the financial year ended Dec 31, 2020 (FY20), from RM709.2 million in FY19.

Revenue was lower at RM3.8 billion from RM4.8 billion attributed to lower contributions from most business segments except healthcare, which saw revenue gaining 6.1% to RM620 million.

In a filing to Bursa Malaysia yesterday, Sunway said the property development segment saw revenue dropping by 9.3% to RM495 million amid lower sales and progress billings from development projects.

Revenue for its property investment segment declined 58.4% to RM334 million.

It said the Movement Control Order (MCO) adversely impacted the group’s hospitality and leisure businesses, as well as its associate Sunway Real Estate Investment Trust.

The construction segment recorded a revenue decrease of 22.2% to RM990.2 million due to lower progress billings caused by stop-work orders by the authorities in light of the Covid-19 pandemic.

Meanwhile, the trading and manufacturing segment saw revenue narrowing 15.4% to RM812.1 million as a result of lower sales.

The quarry segment reported a revenue of RM321.4 million, 7.7% lower due to disruptions caused by the MCO.

As for the fourth quarter (4Q), the company’s net profit rose to RM193.1 million from RM183.5 million in the same quarter a year ago.

Revenue, however, was lower at RM1.3 billion from RM1.4 billion previously.

Going forward, Sunway expects the pandemic to continue to impact its financial performance in the first half of 2021 (1H21), especially its leisure and hospitality businesses in 1Q due to the high infection rate.

“The group is cautiously optimistic that with the progressive rollout of the mass vaccination programme by the government, the local economy will begin to recover steadily in 2H21.

“The economic recovery will also be boosted by various multi-billion-ringgit fiscal stimulus packages when they are implemented by the government,” it noted. — Bernama

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