KUALA LUMPUR: Property developer Sunsuria Bhd posted a net profit of RM1.6 million for the first quarter (Q1) ended December 31, 2023 (FY24) from RM1.1 million posted in the same quarter last year.
The lower net earnings growth rate was due to the higher profit attributable to minority interest as a 51 per cent held subsidiary carries out the Bangsar Hill Park project.
For Q1 FY24, Sunsuria’s revenue increased to RM137.3 million compared to RM78.9 million recorded in the same quarter year.
This growth was primarily driven by advancements in the construction progress for its ongoing residential projects of Tower A, D, and E of Bangsar Hill Park, along with the integrated mixed development of Sunsuria Forum 2 in Setia Alam.
Additionally, new projects launched last year, such as Seni Residences at Sunsuria City and Sunsuria Kejora Business Park (Phase 1), a semi-detached industrial development in Puncak Alam, have contributed to the uptick in revenue for the quarter.
Furthermore, the sale of completed inventories, including Tangerine Suites and Giverny Walk at Sunsuria City, also contributed positively to the Group’s revenue.
Sunsuria recorded a three-fold increase in profit before tax (PBT) to RM13.8 million for Q1 FY24 compared to RM4.5 million previously in correspondence with the higher revenue.
Group chief executive officer Tan Wee Bee said the company kicked off FY24 with promising results, achieving RM114.3 million in property sales during Q1, driven by contributions from completed projects, ongoing developments, and new launches.
“Our unbilled sales as of December 31, 2023, reached RM889.5 million, supporting future earnings visibility as construction progresses.
“Looking ahead, our focus remains on seeking development opportunities in locations prioritising customer satisfaction and convenience.
“With an extensive land bank inventory spanning 2,052.3 acres and a potential gross development value (GDV) of RM8.00 billion, we are poised for new opportunities.
“Sunsuria maintains a prudent approach, continually monitoring economic conditions and market trends to navigate challenges and capitalise on opportunities within Malaysia’s dynamic economic landscape,” Tan said in a statement.
In a strategic move for corporate development, Sunsuria announced in January this year the proposed acquisition of an additional 33.0 per cent equity interests in Bangsar Hill Park Development Sdn Bhd (BHPD).
This property development company owns and develops the Bangsar Hill Park development project with a total GDV of approximately RM2.9 billion.
Currently holding a 51 per cent stake, Sunsuria’s ownership in BHPD will rise to 84 per cent upon completion of the acquisition.
This strategic step aims to consolidate BHPD’s financial performance further, ensuring an increased contribution to Sunsuria’s net profit.
“Recognising the promising potential of the Bangsar Hill Park project, we aim to leverage our extensive property expertise for further value creation,” Tan said, emphasising Sunsuria’s commitment to strategic growth and continued success.
