This article first appeared in The Edge Financial Daily on November 28, 2017

KUALA LUMPUR: Sunway Bhd’s net profit climbed 5% year-on-year (y-o-y) to RM150.85 million in its third quarter ended Sept 30, 2017 (3QFY17) from RM143.61 million, as revenue rose and income tax expense declined.

Quarterly revenue grew 16% y-o-y to RM1.32 billion from RM1.14 billion, on improved contribution from most of its business segments, its Bursa Malaysia filing yesterday showed.

Income tax expense retreated 23% y-o-y to RM28.96 milllion from RM37.71 million.

Notably, its property investment segment reported a 19% rise in revenue to RM225.4 million, on additional contribution from the new Sunway Velocity Mall and improved results from Sunway Pyramid Hotel, which was reopened progressively this year following a refurbishment in 2016.

Meanwhile, its construction segment recorded a 45% revenue rise to RM416.6 million on higher progress billings from local construction projects, and lower intra-group eliminations.

Its trading and manufacturing segment also improved with a 42% revenue rise as better market sentiment resulted in higher sales and profit.

However, the group’s property development segment registered a 35% decline in revenue on lower sales and progress billings from local projects. Its quarry segment also saw revenue dragged down by RM3.7 million to RM50.3 million, on lower sales volume for aggregates and premix, as well as a temporary halt in operations due to closure of an access road at one of its sites.

The group expects its 4QFY17 to be satisfactory.