KUALA LUMPUR (May 26): Sunway Bhd (KL:SUNWAY) posted a net profit of RM9.4 billion for the first quarter ended March 31, 2026 (1QFY2026), thanks to whopping RM9.1 billion fair value gain from the listing of Sunway Healthcare Holdings Bhd (KL:SUNMED).

Excluding the fair value gain, the conglomerate’s earnings growth remains strong. Its quarterly pre-tax profit (PBT) expanded 52% year-on-year to RM462.4 million, up from RM304.1 million a year earlier, driven by stronger performance across most business segments.

Quarterly revenue grew 8% to RM2.56 billion from RM2.37 billion, with no dividend declared for the quarter under review.

In a statement, Sunway Group president Datuk Anuar Taib said the group remains cautious on its outlook amid inflationary pressures, supply chain disruptions, evolving global trade dynamics and softer consumer sentiment in an uncertain geopolitical environment.

He said the group remains cautiously optimistic of delivering stable earnings in FY2026, supported by its resilient portfolio, healthy unbilled sales, strong construction order book visibility and disciplined expansion strategy.

Anuar added that Sunway will continue to exercise financial discipline while enhancing operational efficiency and execution through greater adoption of technology and innovation.

Revenue from the property development segment more than doubled to RM653.6 million from RM263.3 million a year earlier, while PBT slightly more than tripled to RM102.2 million from RM33.4 million, driven by the disposal of an education building, higher progress billings from Malaysian projects and contributions from newly acquired MCL Group, now rebranded as Sunway MCL.

The segment launched projects with a total gross development value of RM2.1 billion and recorded sales of RM1.4 billion, supported mainly by strong take-up of its Pinery Residences project in Singapore, keeping the group on track to meet its FY2026 targets of RM4.8 billion in launches and RM4.2 billion in sales.

Meanwhile, its property investment segment posted revenue of RM266.2 million, up 8.1% year-on-year, while PBT remained broadly stable at RM92.4 million, supported mainly by stronger retail performance.

The construction segment recorded PBT of RM159.1 million on revenue of RM794.5 million, up 38.9% year-on-year, driven mainly by the finalisation of accounts for several completed projects. It secured RM3.59 billion in new contracts during the quarter, meeting more than half of its RM6 billion replenishment target.

The segment also strengthened its advanced technology facility order book with three new data centre projects and onboarded a new international hyperscale operator, bringing total delivered capacity to more than 180MW while managing 10 ongoing projects for global technology clients.

In healthcare, Sunway recorded Ebitda growth of 19% to RM112 million, while normalised Ebitda rose 30.9% to RM122 million, driven by stronger revenue and improved operating efficiency from the ramp-up of Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh.

However, PBT fell to RM31.1 million from RM31.8 million a year earlier, mainly due to higher depreciation and financing costs following the commissioning of Sunway Medical Centre Ipoh, partially offset by improved performance from established hospitals.

Shares of Sunway fell 15 sen or 2.8% to RM5.24 on Tuesday, giving the group a market capitalisation of RM35.7 billion. The stock has retreated from its peak of RM5.81 on Feb 26 to a low of RM4.80 end-March. Year to date, the stock has declined more than 6%.