Sunway Berhad’s fourth-quarter revenue for 2021 increased 13.5% year-on-year to RM1.24 billion, predominantly due to stronger revenue recorded from property investment and others segments which managed to offset the lower revenue from the other business segments.
The Group recorded a profit before tax of RM256.6 million from Continuing Operations for the current quarter ended 31 December 2021, from RM236.1 million in the corresponding quarter of the previous financial year. This represents an increase of 8.7% y-o-y which was underpinned by stronger contributions from property investment, construction, and other segments.
For the year cumulatively, Sunway’s revenue rose to RM3.7 billion from RM3.2 billion in 2020, profit before tax however was slightly down to RM465 million from RM490 million in the previous year.
It should be noted that development profit on two of the Group’s ongoing property development projects in Singapore will only be recognized upon completion and handover of the projects. As at end of the current quarter, the accumulated progressive profits of these projects amounted to RM51.7 million, of which RM11.7 million was recorded in the current quarter, was not recognised.
During the current quarter, the Group completed the initial closing in relation to the proposed investment of Sunway Healthcare Group by Greenwood Capital Pte. Ltd. In relation to this, the Group has deconsolidated Sunway Healthcare Group and reclassified its remaining equity interest in Sunway Healthcare Group as joint ventures. The financial results of the healthcare segment are reported separately under Discontinued Operations in the consolidated income statements. The Group has recognised a one-off net gain of RM2.28 billion arising from the partial divestment of Sunway Healthcare Group which increased the net assets per share to RM2.05.
Under the Discontinued Operations, the healthcare segment recorded a net profit of RM2.3 billion in the current quarter. Excluding the one-off net gain arising from the partial divestment of Sunway Healthcare Group of RM2.28 billion, the operating net profit increased 50% y-o-y, from RM22.5 million in 4Q 2020 to RM33.7 million in 4Q 2021. The strong performance in the current quarter was due to sustained improvement in hospital activities with the higher number of admissions and outpatient treatments at both Sunway Medical Centre and Sunway Medical Centre Velocity. In addition, Sunway Medical Centre Velocity achieved its maiden operating profit of RM0.5 million in the current quarter.
The Group declared a second interim single-tier cash dividend of 1.50 sen per ordinary share for the financial year ended 31 December 2021 and a preferential dividend of 5.25% per annum.
On the outlook for 2022, Sunway Group Chief Financial Officer, Chong Chang Choong said “barring any unforeseen circumstances, the Group expects the financial performance of 2022 to be better than last year.”
