KUALA LUMPUR (Nov 21): Sunway Bhd’s third quarter net profit grew by a marginal 0.21% to RM145.31 million, from RM145.01 million a year earlier, due to higher contributions from the property development and construction segments.

Earnings per share for the quarter ended Sept 30, 2018, however, dropped to 2.99 sen from 3.04 sen, the group’s filing with Bursa Malaysia showed.

Sunway said its profit before tax would have been higher by 32.9% if not for the adoption of MFRS 15 on one of the group’s Singapore and China property development projects, for which the group can only recognise the development profits upon completion.

“The progressive profits of RM57.1 million from these projects, which could have been recognised in the current quarter under the progressive revenue recognition treatment, has to be deferred accordingly,” said Sunway.

Sunway said quarterly revenue was up 12.6% to RM1.44 billion from RM1.28 billion previously.

For the cumulative nine months ended Sept 30, 2018, Sunway saw its net profit rise 4.18% to RM466.67 million or 9.57 sen per share from RM447.95 million or 9.36 sen per share a year ago.

Revenue for the period rose 11.85% to RM4.04 billion from RM3.61 billion.

On prospects, Sunway said the group will continue to deliver a satisfactory performance for the fourth quarter, barring any unforeseen circumstances.

While the short-term outlook is still clouded by the trade war between the US and China, Sunway said the domestic economy is expected to remain resilient, underpinned by recovering consumer and business confidence going forward.

Sunway’s shares closed down three sen or 2.03% at RM1.45, with a market capitalisation of RM7.04 billion.