Sunsuria 3Q earnings up 17% as property sales momentum rises

Sunsuria 3Q earnings up 17% as property sales momentum rises
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KUALA LUMPUR (Aug 26): Sunsuria Bhd net profit rose 17% to RM4.16 million for the third quarter ended June 30, 2022 (3QFY22) from RM3.57 million a year ago, as sales momentum rose amid normalising economic activities and the reopening of international borders.

Earnings per share (EPS) increased to 0.46 sen for 3QFY22, from 0.40 sen last year, the group’s stock exchange filing showed. 

The real estate developer, which is 60%-owned by businessman Tan Sri Ter Leong Yap, reported that revenue almost doubled to RM122.49 million in 3QFY22, from RM62.21 million a year ago.

For the cumulative nine-month period (9MFY22), net profit inched up by 3.3% to RM14.48 million, from RM14.01 million in the previous corresponding period, while revenue grew 75% to RM302.33 million, from RM173.10 million. 

Going forward, the group said its earnings visibility is supported by unbilled sales of RM889.3 million as at end-June. 

“As the Malaysian economy recovers on the back of normalising economic activities and reopened international borders, we are seeing a gradual increase in consumer confidence, especially in the residential property sector, due to pent up demand,” Ter said in a statement on Friday (Aug 26).

“Looking ahead, we remain cognisant of the challenges such as rising interest rates, growing inflation and escalation of building material prices which may impact operating costs. We will strive towards mitigating these risks by implementing effective supply chain management and value engineering to optimise the cost structure of our developments,” he said.

Sunsuria closed unchanged at 35.5 sen per share on Friday (Aug 26), giving it a market capitalisation of RM318.05 million.

Lam Jian Wyn