Suncity post RM71.66 m 2Q net profit, declares 31 sen interim dividend

SUNWAY CITY BHD [] (Suncity) posted a net profit of RM71.66 million in its second quarter ended June 30, 2010 (2Q2010) on the back of a revenue of RM262.29 million.
In a filing to Bursa Malaysia on Friday, August 20, Suncity said the results were largely driven by the group's core businesses being the property development and property investment segments.

"The property development project with significant contribution during the quarter was from Sunway SPK while Sunway Pyramid Shopping Mall remains the largest contributor for the property investment segment." said the group.

Suncity posted earnings per share of 15.25 sen for 2Q2010. Its net asset per share stood at RM5.21 as at June 30.

There was no comparison made with the previous corresponding quarter due to the change of financial year end from June 30 to December 31 during the previous 18-month financial period.

Its board of directors declared an interim dividend of 31 sen per ordinary share of RM1 each less tax for the financial year ending Dec 31, 2010 (FY10), which would be paid on a date to be determined.

For the six months ended June 30, 2010, Suncity registered a net profit of RM294.95 million riding on a revenue of RM545.57 million.

On its prospects, Suncity said that on the back of unbilled sales of RM743 million, it expects the property development segment to continue to contribute positively to the group's results this financial year.

"While enjoying lower interest expense resulting from the reduced borrowings as mentioned above, the group also benefits from the share of profits from the Sunway REIT while receiving manager's fees for the management of Sunway REIT," it said, adding that the board viewed the group's performance for FY10 would improve.

Suncity's share price on August 20 added 13 sen to close at RM3.73 with 129,600 shares traded. - by Yong Min Wei