Sunway (SUNWAY) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 FY2024 rose 31.8% year-over-year to RM2,029 million, with profit before tax up 86.7% to RM462.7 million and PATMI up 109% to RM376 million, reflecting strong performance across all core business segments.

• For the nine months ended 30 September 2024, revenue increased 17.7% to RM5,027.8 million and profit before tax surged 60.3% to RM1,030.4 million.

• All core segments—property development, construction, healthcare, and property investment—delivered robust growth, with property development and construction showing particularly strong YoY gains.

• The group remains optimistic about ending the financial year positively, supported by a diversified business model and solid segmental contributions.

Financial highlights

• Q3 FY2024 revenue: RM2,029 million (up 31.8% YoY); profit before tax: RM462.7 million (up 86.7% YoY); PATMI: RM376.1 million (up 109% YoY); basic EPS: 5.28 sen (up 102%).

• Nine-month net profit attributable to owners reached RM818.8 million, up 32%, with basic EPS at 11.69 sen, up 64%.

• EBIT margin improved to 22.6% in Q3 FY2024 from 17.9% a year ago; PATMI margin rose to 18.5% from 11.7%.

• Net assets per share: RM2.21 as of 30 September 2024, up from RM2.15 at end-2023.

• Net gearing ratio improved to 0.40x from 0.49x at end-2023, with total borrowings at RM10.55 billion.

Outlook and guidance

• Confident of continued strong performance for FY2024, driven by all business segments.

• Healthcare segment is preparing for a proposed IPO and will expand bed capacity to 2,500 by early 2025, with two new hospitals opening.

• Property development is on track to meet launch targets and is actively replenishing landbank for future growth.

• Construction segment achieved its revised orderbook replenishment target and is pursuing opportunities in advanced technology facilities, with a robust order book of RM7.1 billion.