SUNCON (5263) - SunCon posts 9.2% increase in 4Q net profit, sees order book at RM4.8b
KUALA LUMPUR (Feb 23): Sunway Construction Group Bhd (SunCon) has posted a 9.23% uptick in its net profit to RM32.05 million for its fourth quarter ended Dec 31, 2016 (4QFY16) from RM29.35 million a year earlier.
Revenue rose 17.62% to RM553.15 million from RM470.28 as its construction and precast segments reported higher sales of RM466.5 million and RM86.6 million respectively, the group said in a filing today.
In the construction segment, revenue rose to RM466.5 million from RM417.6 million due to increased activities under the building division.
Meanwhile, the precast segment recorded a 65% increase in revenue to RM86.6 million from RM52.6 million. This was contributed by increased production volume and higher certification from its clients, SunCon said.
However, the profit before tax (PBT) margin for the segment slipped to 20% from 38.2% year-on-year.
“The higher volume was in line with the delivery schedule of our existing order book (while the) higher margin in the previous corresponding quarter was a result of finalisation of accounts and better pricing obtained for jobs secured earlier,” it said.
For the full year ended Dec 31, 2016 (FY16), both net profit and revenue were down by 3.21% and 6.68% respectively, with net profit slipping to RM123.51 million from RM127.16 million a year ago.
Meanwhile, the drop in revenue to RM1.79 billion was led by lower revenue in its construction segment, particularly under the civil and infrastructure division and the foundation and geotechnical engineering division.
Under the civil and infrastructure division, SunCon saw the completion of a viaduct for the Klang Valley Mass Rapid Transit (KVMRT V4) project and the Light Rail Transit (LRT) Package B.
“In addition, the KVMRT V201 which was awarded on April 1, 2016 did not garner much revenue as there was much preparatory works involved which was not claimable this year,” SunCon said.
Meanwhile, the foundation and geotechnical engineering division had seen a lower order book during the year.
Going forward, SunCon reported an outstanding order book of RM4.8 billion, having secured a new order book of RM2.7 billion in 2016 while RM449 million was secured in January 2017.
“Budget 2017 allocated a sum of RM46 billion for development expenditure, 2.2% higher than last year's Budget, which bodes well for the group (as we have) the proven track record to bid for such development projects,” it said.
Shares in SunCon closed up two sen at RM1.80 with some 2.51 million shares traded, giving a market capitalisation of RM 2.23 billion.
SUNCON (5263) - SunCon posts 9.2% increase in 4Q net profit, sees order book at RM4.8b
http://www.theedgemarkets.com/my/article/suncon-posts-92-increase-4q-net-profit-sees-order-book-rm48b
