Sunsuria's Revenue And Net Profit Rise On Higher Sales And Work Completion In Q

Sunsuria Berhad announced its revenue and net profit of RM61.3 million and RM9.21 million for the current quarter under review.

For the three months ended 30th September 2020, Sunsuria recorded a 203% quarter-on-quarter increase in revenue to RM61.3 million compared to RM20.2 million achieved in the preceding quarter. Meanwhile, net profit rose 228% quarter-on-quarter to RM9.21 million from RM2.81 million recorded in Q3 FY2020.

The rise in revenue quarter-on-quarter is attributed to higher sales recorded in the current quarter. Net profit in the current quarter was higher due to the almost two-fold increase in percentage of work done in Q4 FY2020 as well as the Group’s various cost-cutting measures implemented on non-critical expense items.

Currently, the Group’s ongoing projects are Monet Springtime, Monet Garden, Giverny Walk and Tangerine Suites at Sunsuria City, as well as The Forum 2 mixed development at Setia Alam.

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Monet Springtime, which comprises 308 units of double-storey terrace homes, contributed 64% of the current quarter’s revenue. Sunsuria attained a year-to-date revenue and net profit of RM197.08 million and RM30.17 million respectively, compared to RM534.26 million and RM135.47 million respectively in the previous year’s corresponding quarter.

The difference in Q4 revenue and net profit year-on-year is due to higher work completion upon the issuance of the Certificate of Completion and Compliance for The Olive and Monet Lily at Sunsuria City in the previous year’s corresponding quarter, which contributed 56% of Q4FY2019 revenue.

Besides this year’s financial performance being adversely affected by various levels of the Movement Control Order (MCO) in Malaysia, the previous financial year’s financial results included a one-off revenue and gross profit contribution of RM149.36 million and RM95.47 million respectively from Sunsuria’s Jasper Square commercial development upon its completion in February 2019.

“The uptick in sales and the 163% increase in the amount of work done in the current quarter is encouraging for the Group, as it is a reflection of our Group adapting well to the new normal of the COVID-19 pandemic. It has been an unprecedented year with a pandemic-hit economy but with the proposed acquisition for our planned developments – Bangsar Hill Park in Lorong Maarof and Nadi@TAR in Kuala Lumpur – currently underway, as well as the news of the availability of COVID-19 vaccine, we look forward to brighter prospects in 2021.

Moving forward, we will continue to play our part in ensuring we consistently deliver products and services with integrity, quality and reliability, as we embrace the new normal,” said Sunsuria’s Executive Chairman Tan Sri Datuk Ter Leong Yap.

In October, Sunsuria entered into two agreements to venture into the development of Bangsar Hill Park – a high-rise residential project along Lorong Maarof – and Nadi@TAR, a high-rise mixed commercial project along Lorong Tuanku Abdul Rahman in Kuala Lumpur.

The proposed Bangsar Hill Park project has an estimated gross development value (“GDV”) of RM3.01 billion, while Nadi@TAR has an estimated GDV of RM524.8 million.

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