Wednesday, March 9, 2011

Sunway ... Mar11

It has secured a RM257.96 million contract for the proposed construction of part of the Legoland Malaysia Theme Park in Johor. Its unit Sunway Construction Sdn Bhd had accepted the letter of award from IDR Assets Sdn Bhd to build package four of the theme park.

The proposed project is targeted to be completed on June 2, 2012 with a construction period of 15 months. It is expected to contribute positively to the earnings of Sunway Group for the financial year ending Dec 31, 2011 onwards.

While the proposed project was subject to normal construction risk of materials price fluctuation, this risk could be mitigated at this juncture.

Sunway Holdings Bhd posted 43% lower net profit of RM25.6 million from RM48.5 million the quarter before, dragged down by provision for impairment losses in subsidiaries in respect of properties, plant and equipment, and inventories.

Revenue, however, rose marginally to RM496.7 million from RM489 million in the preceding quarter.

Nonetheless, Sunway Holdings achieved record profit of RM162.6 million for FY10 ended Dec 31, 48% higher from RM109.8 million from its previous 18-month ended Dec 31, 2009.

However, its revenue drop about 25% to RM1.9 billion from RM2.64 billion in the 18-month period ended Dec 31, 2009.

Its construction division continued to be the main contributor to its earnings with orders worth RM900 million secured last year, followed by its overseas operation and property development.

The company expects to chalk up healthy profits on the back of the outstanding order book currently standing at RM2.4 billion.

Sunway Holdings said it was expecting an increase in construction activities with the pick-up in private development activities under the Economic Transformation Programme.

The group’s property unbilled sales stands at about RM470 million from existing property development projects in Malaysia, Singapore and China.

Coupled with upcoming launches and the continued addition of new land banks, the property development division is expected to contribute significantly to the group’s earnings.

The group had been amplifying the geographical footprint of its trading and manufacturing division and it expected to record steady growth in the coming years.

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