KUALA LUMPUR (May 21): Conglomerate Sunway Bhd (KL:SUNWAY) reported a 21.6% year-on-year increase in its first-quarter net profit, driven mainly by stronger performance from the property development and healthcare segments.

The diversified group saw its net profit for the quarter ended March 31, 2024 (1QFY2024) rise to RM172.23 million or 2.27 sen per share from RM141.64 million or 1.98 sen per share a year ago, its filing to Bursa Malaysia on Tuesday showed.

The group said the strong financial performance was fuelled by higher sales and progress billings from new and ongoing local development projects.

Quarterly revenue grew 12.28% to RM1.42 billion from RM1.26 billion in 1QFY2023.

Sunway group president Tan Sri Chew Chee Kin said the group's performance for 1QFY2024 was also supported by the encouraging economic growth during the quarter, while the group continues to focus on its core businesses, particularly the healthcare, property development, and construction segments.

Meanwhile, Chew also sees that the Johor-Singapore Special Economic Zone (JSSEZ) and the Rapid Transit System Link (RTS Link) project between Johor Bahru and Singapore will augur well for Sunway City Iskandar Puteri.

On healthcare, he expects Sunway's three operating hospitals to continue growing, as capacity expansion is on track to cater to the growing demand for quality healthcare services.

“Two new hospitals, Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh, are scheduled to open in 4QFY2024 and 1QFY2025, respectively. This will add 600 beds capacity progressively — which will accelerate the growth trajectory of the healthcare segment," he said.

Shares of Sunway settled up one sen or 0.27% at RM3.66 on Tuesday, valuing the group at RM20.76 billion. The counter has surged 70.23% year to date.