KUALA LUMPUR (Nov 26): Sunway Bhd’s (KL:SUNWAY) third-quarter net profit fell 10.09% year-on-year (y-o-y), dragged down by higher operating expenses and tax expense, despite improved revenue for the quarter under review.

Net profit stood at RM338.14 million for the three months ended Sept 30, 2025 (3QFY2025), compared to RM376.08 million a year before, the conglomerate’s bourse filing showed on Wednesday (Nov 26).

Its operating expenses were 26% higher at RM2.35 billion in 3QFY2025, compared to RM1.87 billion a year ago, while tax expenses surged 63% to RM88.56 million from RM54.18 million last year.

Quarterly revenue, however, rose 26.43% y-o-y to RM2.57 billion for 3QFY2025 from RM2.03 billion.

For the nine months of FY2025 (9MFY2025), Sunway’s net profit came in 2.09% lower at RM801.64 million from RM818.78 million a year before, despite revenue for 9MFY2025 jumping 49.05% to RM7.49 billion from RM5.03 billion during the same period last year.

The group did not recommend any dividend for the quarter under review. Year to date, it has paid a four sen dividend, doubling from the two sen it paid in the same period last year.

Segmentally, the construction segment’s profit before tax (PBT) was 73.9% higher at RM121.3 million, up from RM69.77 million previously, driven by accelerated progress across multiple data centre projects. To date, its unit Sunway Construction Group Bhd (KL:SUNCON) has delivered over 144 MW of data centre capacity and is currently managing eight ongoing projects for leading global technology corporations.

Its healthcare segment recorded a lower PBT of RM51.4 million in the current quarter, compared to RM63 million a year ago, dragged down by start-up operational losses from the newly commissioned Sunway Medical Centre Damansara (SMC Damansara) and Sunway Medical Centre Ipoh (SMC Ipoh).

Excluding these two new hospitals, the healthcare segment would have achieved a PBT of RM75.3 million, representing a 19.4% y-o-y increase. Both hospitals continued to ramp up their operations, with SMC Damansara achieving its maiden earnings before interest, taxes, depreciation and amortisation (Ebitda) breakeven in August 2025.

The property development segment’s PBT declined sharply by 70.2% to RM55.1 million from RM185.1 million last year. The higher profit in 3QFY2024 was largely due to a one-off development profit of RM124 million from the completion and delivery of one of the group’s Singapore executive condominium development projects.

Excluding this one-off recognition, the segment’s performance for the quarter would have remained stable, supported by ongoing property development projects in Malaysia and Singapore, as well as healthy property sales.

On its prospects, Sunway Group president Tan Sri Chew Chee Kin said the group remains on track to deliver a strong performance for the year.

“The group is expected to benefit from the resilience of Malaysia’s economy, supported by the government’s ongoing structural reforms and the implementation of key national masterplans.

“The establishment of special economic zones and sustained investments from both the private and public sectors provide a favourable operating landscape for the Group, reinforcing our growth prospects,” he said in a statement.

On the expansion of its healthcare business, Chew said it is strategically positioned to meet increasing demand for quality healthcare, driven by the rising incidence of non-communicable diseases and an ageing population.

“The additional bed capacity also enhances our capacity to serve medical tourists, as Malaysia continues to strengthen its standing as a preferred medical tourism destination,” he added.

Sunway’s shares were up one sen or 0.18% at RM5.55 at Wednesday’s close, valuing the conglomerate at RM35.06 billion. The stock has risen 16% year to date.