KUALA LUMPUR (May 24): Higher contributions from property investment and healthcare segments lifted Sunway Bhd’s first quarter net profit by 3.76% to RM141.64 million from RM136.51 million a year ago. This more than offset the lower profit contributions from the other business segments, the group said.

Earnings per share for the quarter ended March 31, 2023 (1QFY2023) grew to 1.98 sen from 1.89 sen previously, according to Sunway’s bourse filing.

Quarterly revenue rose to RM1.26 billion, up 13.6% from RM1.11 billion in 1QFY2022, driven by higher contributions from all business segments except construction and others segments.

Sunway said the earnings from two of the group’s ongoing property development projects in Singapore will only be recognised upon completion and handover of the projects.

“Hence, as at end-March 2023, the accumulated progressive profits related to these projects amounting to RM121.6 million is not yet recognised,” the group said in a statement.

Sunway group chief financial officer Chong Chang Choong said the group’s 1QFY2023 financial performance was better than the pre-pandemic period, anchored by sustained domestic economic growth.

“While there may be downside risks to the economic growth outlook, the group has taken actions to make our business units more resilient to manage the headwinds,” Chong said.

He said the group is “cautiously optimistic” that most of its business units will continue to perform satisfactorily.

“In particular, the group expects its leisure, hospitality, and healthcare segments to continue to benefit from the improving inbound leisure and medical-related tourism as more international airlines are resuming their flights to Malaysia,” he added.

Sunway's share price closed two sen or 1.27% lower at RM1.55 on Wednesday (May 24), bringing the group a market capitalisation of RM7.75 billion.