Sunway 2Q net profit rises 17% to RM318.6m; RM9.1b gain lifts 1H earnings

Sunway Bhd reported a 16.7% rise in 2QFY2026 net profit to RM318.59 million, driven by higher contributions from property development and investment. The group also posted a RM9.1 billion first-half gain from the revaluation of its healthcare unit upon listing.

PETALING JAYA (Aug 27): Sunway Bhd’s net profit attributable to shareholders rose 16.7% year on year to RM318.59 million for the second quarter ended June 30, 2026 (2QFY2026), as higher contributions from most business segments lifted revenue.

In a Bursa Malaysia filing on Thursday (Aug 27), the group said revenue increased 13.4% to RM2.91 billion from RM2.56 billion a year earlier, while profit before tax (PBT) grew 25.3% to RM496.23 million from RM395.97 million. Earnings per share rose to 4.71 sen from 4.07 sen. Sunway declared a first interim single-tier dividend of three sen per share for the six months ended June 30, 2026, compared with four sen for the corresponding period a year earlier. The dividend will be paid on Oct 15, with an ex-date of Sept 17 and entitlement date of Sept 18.

The property development segment recorded a 15.2% increase in quarterly revenue to RM405 million from RM351.4 million, while PBT climbed 57.2% to RM82 million from RM52.2 million. Sunway attributed the improvement mainly to higher progress billings from ongoing local development projects and contributions from MCL Group, now rebranded as Sunway MCL. For the first half, the segment launched projects with a combined gross development value (GDV) of RM2.7 billion and achieved property sales of RM2.3 billion. The group also secured two strategic land parcels at River Valley Green and Bayshore Drive in Singapore, with an estimated combined GDV of about RM17 billion, or RM6.4 billion on an effective-GDV basis.

Property investment revenue rose 18.2% to RM263.4 million from RM223 million, supported by improved contributions from its leisure division and the newly acquired Sunway Wangsa Mall, as well as better operating performance at Sunway Velocity Mall. Property investment PBT increased 2.5% to RM78.2 million from RM76.3 million. Sunway said that excluding an RM11 million fair-value gain on investment properties recognised in the corresponding quarter last year, underlying PBT increased 19.8%.

Construction revenue, however, fell 38.6% to RM779.3 million from RM1.27 billion, while PBT eased 1.3% to RM133.1 million from RM134.8 million. Sunway said revenue in the corresponding quarter last year had benefited from accelerated progress on several data centre projects. The construction segment had secured RM6.9 billion in new orders year to date, exceeding its initial full-year replenishment target of RM6 billion. Its outstanding order book stood at a record RM10.5 billion as at Aug 21. Sunway raised its full-year order-book replenishment target to between RM7 billion and RM9 billion.

For the six months ended June 30, group revenue rose 10.8% to RM5.46 billion from RM4.93 billion, while net profit attributable to shareholders surged to RM9.73 billion from RM463.51 million. The first-half result included a RM9.0958 billion net gain arising from the remeasurement of Sunway’s investment in Sunway Healthcare Holdings Bhd (SHH) to fair value upon its listing and reclassification as a subsidiary. Excluding RM9.1 billion in one-off gains, Sunway said the year-on-year improvement in first-half PBT was RM258.5 million, or 36.9%. In 2QFY2026, healthcare recorded revenue of RM671.8 million and PBT of RM99.9 million. Licensed beds increased to 1,855 as at end-June from 1,777 at end-2025, with a further 217 beds pending licensing.

Sunway said it remains cautiously optimistic about its prospects for FY2026, citing its diversified business model, robust unbilled sales, continued expansion of healthcare bed capacity, record construction order book and resilient recurring-income businesses.