Sunsuria Bhd (-ve)

SHARES in Sunsuria Bhd (fundamental: 2.0 /3.0, valuation: 1.1/3.0) triggered our momentum algorithm as its share price gained 3.5 sen or 3.55% to close at RM1.02 yesterday, with 1.1 million shares changing hands.

Year to date, its share price has risen 12.09% from 91 sen on Dec 31 last year. At the current price, Sunsuria has a market capitalisation of RM806.82 million.

This is the third time Sunsuria was featured in the “Stocks with Momentum” this year.

For the fourth financial quarter ended Sept 30, 2016 (4QFY16), Sunsuria’s net profit jumped fivefold to RM24.55 million or 3.07 sen per share, from RM4.63 million or 1.72 sen per share a year ago, mainly driven by the property developer’s ongoing projects namely Suria Residence, The Forum, as well as the Bell Avenue and Jasper Square in Sunsuria City.

Revenue also more than doubled to RM87.72 million for the quarter under review, from RM32.24 million in 4QFY15.

On an annual basis, Sunsuria’s net profit leaped by threefold to RM43.84 million for FY16, from RM13.30 million for FY15, while revenue also more than doubled to RM202.40 million, from RM85.56 million previously.

Earnings per share for FY16 grew to 5.73 sen, from 4.94 sen previously.

Moving forward, the group said it is conscious of the overtone of a subdued global and regional economy.

On the back of this challenging economic environment, Sunsuria said it will remain cautious and focused on its core business activities of property development.

With active construction activities ongoing for Sunsuria Residence, The Forum, Bell Avenue and Jasper Square and coupled with several new launches lining up, Sunsuria expects continued growth in revenue and profit for FY17.