Sunway Construction Group Berhad (Sunway Construction or Group) is pleased to announce its financial results for the quarter ended 31 December 2022.
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Unaudited financial results for the period from 1 January 2022 to 31 December 2022 (FY2022)
Sunway Construction registered a set of stellar financial performance for the financial year ended 31 December 2022. Revenue for the Group increased 24.6% year-on-year (y-o-y) to RM2.2 billion in FY2022, from RM1.7 billion in the preceding year. In tandem with the improvement in revenue, the Group achieved a record profit before tax (PBT) of RM184.1 million in FY2022. The encouraging set of financial performance in FY2022 was underpinned by better performance from all segments.
Revenue for the Construction segment rose 22.9% y-o-y to RM2.0 billion in FY2022 on the back of contribution from projects in India and normalisation of economic activities in the current financial year. In the preceding financial year, various phases of lockdowns had affected productivity of construction activities. Correspondingly, PBT increased 16.6% y-o-y to RM173.4 million.
The Precast segment recorded revenue of RM181.6 million for the financial year ended 31 December 2022, from RM122.9 million in the previous financial year. PBT more than doubled, from RM3.4 million in FY2021 to RM10.7 million in FY2022. Financial performance for the Precast segment was adversely affected in the previous year due to lockdowns in Malaysia, Circuit Breaker in Singapore and a short period of total closure of both precast plants in Johor in the third quarter of FY2021.
Fourth quarter unaudited financial results for the period from 1 October 2022 to 31 December 2022 (Q4 FY2022)
For the quarter ended 31 December 2022, Sunway Construction recorded revenue and PBT of RM503.4 million and RM56.3 million respectively. In the corresponding quarter in the preceding year, the Group’s revenue and PBT stood at RM626.6 million and RM91.0 million respectively. The softer set of financial performance in the quarter under review was primarily due to lower contribution from the Construction segment.
The Construction segment registered revenue of RM443.9 million and PBT of RM51.1 million in Q4 FY2022, representing a decline of 23.5% y-o-y and 42.4% y-o-y respectively. The segment’s higher revenue in the corresponding quarter in the preceding year was due to normalisation of productivity at full capacity coupled with acceleration of projects for completion within the first half of 2022. Meanwhile, PBT and PBT margin were higher in the same quarter in the previous year due to finalisation of account and re-calibration of margin for projects which were approaching the completion stage.
For the quarter under review, revenue for the Precast segment rose 27.4% y-o-y to RM59.5 million, from RM46.7 million in Q4 FY2021. Higher revenue for the quarter was buoyed by higher recognition from new projects. Pursuant to relaxation in border restriction and easing of entry of migrant workers, stock turnover has improved as construction progress started to improve in Singapore. PBT jumped 126.1% y-o-y to RM5.2 million in Q4 FY2022 on the back of reversal of provision for completed projects.
Sunway Construction declared a second interim single-tier dividend of 2.50 sen per ordinary shares for the financial year ended 31 December 2022. Total dividend declared for the financial year increased to 5.50 sen, compared to 5.25 sen in FY2021. Based on Sunway Construction’s share price of RM1.56 as at 31 December 2022, this translated into a dividend yield of 3.5%.
Sunway Construction Group Managing Director Liew Kok Wing commented, “We are pleased to deliver a set of stellar financial results, with a record PBT in FY2022. Notwithstanding that, the Group also surpassed its FY2022 new order book target to end the year at RM2.6 billion, compared to our target of RM2.0 billion.”
He added, “We continue to make good progress in our regionalisation and new business expansion efforts. The group has recently secured our maiden hyperscale data-centre project valued at approximately RM1.7 billion in Sedenak Tech Park, Johor.”
He concluded, “After recording a robust GDP growth in 2022, Malaysia’s economic growth is expected to moderate in 2023. Barring any unforeseen circumstances including potential escalation in building materials prices, the Group is cautiously optimistic of registering a positive growth in FY2023 supported by our strong existing outstanding order book.”
Source: Sunway Construction
