Sunway (SUNWAY) Q2 2024 earnings summary

Executive summary

• Q2 FY2024 revenue rose 7.6% year-over-year to RM1,580 million, with profit before tax up 68% to RM341 million, reflecting broad-based operational improvements and significant fair value gains.

• PATMI increased 80.5% YoY to RM270.5 million; basic EPS for Q2 FY2024 was 4.11 sen, up from 2.54 sen in Q2 FY2023.

• Total equity increased to RM16.1 billion as of 30 June 2024, with shareholders' funds at RM14.5 billion and net assets per share at RM2.19.

• Declared a first interim dividend of 2.00 sen per share and a preferential dividend of 5.25% per annum on ICPS.

• For H1 2024, revenue increased 9.8% to RM2,998.9 million and profit before tax grew 43.7% to RM567.7 million.

Financial highlights

• Revenue for Q2 FY2024 was RM1,580 million, up 8% YoY and 11% sequentially from Q1 FY2024.

• Profit before tax surged 68% YoY to RM341 million, driven by stronger operating performance and fair value gains totaling RM89.4 million.

• Operating cash flow for H1 2024 was negative RM60.3 million, while investing activities generated RM752.1 million, mainly from disposal of investments.

• EBIT margin improved to 22.2% in Q2 FY2024 from 14.8% in Q2 FY2023.

• Net assets per share rose to RM2.19 as of 30 June 2024.

Outlook and guidance

• Optimistic outlook for the remainder of 2024, with continued growth expected in healthcare from new hospitals and increased bed capacity.

• Construction order book replenishment target revised upward to RM4.0–5.0 billion for 2024 after surpassing initial targets.

• Property development to leverage positive sentiment in the Southern region, especially with the Johor-Singapore Special Economic Zone and improved connectivity.

• Healthcare tourism expected to grow beyond 2024.

• Board remains confident in performance barring unforeseen circumstances.