Hey there, fellow Malaysian retail investors! Let’s dive into the latest financial report from **Sunsuria Berhad** for their second quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, highlighting both its resilience and the challenges it navigates in a dynamic market environment.
While the quarter saw a dip in revenue, the company’s year-to-date profit before tax actually grew, showcasing strategic shifts and underlying strengths. We’ll unpack the key figures, segment performance, and what Sunsuria is doing to secure its future. Stick around to understand what’s shaping this established Malaysian player!
Core Financial Highlights
Sunsuria Berhad’s latest interim financial statements present a mixed picture, with a quarterly revenue decline but a positive year-to-date profit before tax growth. Let’s break down the numbers:
Quarterly Performance (Q2 FY2025 vs Q2 FY2024)
For the individual quarter ended 31 March 2025, Sunsuria faced a notable decrease in its top line. Revenue saw a significant drop, impacting the overall profit before tax.
Current Quarter (Q2 FY2025)
Revenue: RM125.93 million
Profit Before Tax: RM14.06 million
Profit Attributable to Owners: RM7.99 million
Basic Earnings Per Share: 0.89 sen
Previous Year Corresponding Quarter (Q2 FY224)
Revenue: RM167.84 million
Profit Before Tax: RM22.22 million
Profit Attributable to Owners: RM4.30 million
Basic Earnings Per Share: 0.48 sen
Revenue for Q2 FY2025 decreased by RM41.91 million, or 25%, compared to the corresponding period last year. This was primarily due to higher progressive profit recognition in the previous year’s corresponding quarter from the completion and handover of Forum 2 SOHO in January 2024 and Forum 2 Serviced Apartment in April 2024. Consequently, profit before tax also decreased by RM8.16 million, or 37%.
However, it’s worth noting that the profit attributable to Owners of the Company saw a substantial increase of RM3.69 million, or 86%, and basic earnings per share rose by 0.41 sen, or 85.4%, indicating improved efficiency or lower non-controlling interests impacting the bottom line for shareholders.
Year-To-Date Performance (6M FY2025 vs 6M FY2024)
Looking at the cumulative six-month period, a more encouraging trend emerges for Sunsuria’s profitability.
Current Period (6M FY2025)
Revenue: RM284.31 million
Profit Before Tax: RM37.14 million
Profit Attributable to Owners: RM16.75 million
Basic Earnings Per Share: 1.87 sen
Previous Year Corresponding Period (6M FY2024)
Revenue: RM305.10 million
Profit Before Tax: RM36.00 million
Profit Attributable to Owners: RM5.97 million
Basic Earnings Per Share: 0.67 sen
While year-to-date revenue decreased by RM20.79 million, or 7%, primarily due to lower contributions from the property development division (for reasons similar to the quarterly decline), this was partially offset by a notable revenue growth from the education division, following the opening of Concord College International School in September 2024.
Crucially, profit before tax for the six-month period increased by RM1.14 million, or 3%. This positive shift was mainly driven by higher other income, including the recognition of non-recurring forfeiture income, and lower finance costs during the period. Profit attributable to Owners of the Company saw an impressive jump of RM10.78 million, or 180.8%, with basic earnings per share rising by 1.20 sen, or 179%.
Comparison to Immediate Preceding Quarter (Q2 FY2025 vs Q1 FY2025)
Comparing the current quarter to the immediate preceding quarter (Q1 FY2025) provides insights into recent operational momentum.
Current Quarter (Q2 FY2025)
Revenue: RM125.93 million
Profit Before Tax: RM14.06 million
Immediate Preceding Quarter (Q1 FY2025)
Revenue: RM158.38 million
Profit Before Tax: RM23.08 million
Both revenue and profit before tax decreased compared to the immediate preceding quarter. Revenue declined by RM32.46 million, or 20%, mainly due to lower progressive profit recognition from the ongoing development project, Bangsar Hill Park, and the handover of Seni Residences in the immediate preceding quarter. The decrease in profit before tax by RM9.03 million, or 39%, was consistent with the lower revenue and also impacted by higher non-recurring forfeiture income in the immediate preceding quarter.
Segmental Performance Analysis (Year-To-Date)
Sunsuria operates across several key segments. Here’s how each contributed to the year-to-date performance:
| Business Segment | Revenue (6M FY2025) | Revenue (6M FY2024) | Change in Revenue | Segment Profit/(Loss) (6M FY2025) | Segment Profit/(Loss) (6M FY2024) | Change in Segment Profit/(Loss) |
|---|---|---|---|---|---|---|
| Property Development | RM276.44 million | RM304.01 million | -RM27.57 million | RM65.18 million | RM58.37 million | +RM6.81 million |
| Construction | RM0.06 million | RM0.18 million | -RM0.12 million | RM4.53 million | RM5.05 million | -RM0.52 million |
| Education | RM6.80 million | RM0.22 million | +RM6.58 million | (RM4.75 million) | (RM1.75 million) | -RM3.00 million (increased loss) |
| Healthcare | RM0.32 million | RM0.09 million | +RM0.23 million | (RM1.11 million) | (RM1.04 million) | -RM0.07 million (increased loss) |
| Investment Holding & Others | RM0.69 million | RM0.61 million | +RM0.08 million | (RM3.82 million) | (RM1.35 million) | -RM2.47 million (increased loss) |
The **Property Development** segment, while seeing a decrease in revenue due to project timelines, managed to increase its segment profit. This suggests effective cost management or higher-margin projects contributing to the bottom line.
The **Education** division showed remarkable revenue growth, primarily driven by the newly opened Concord College International School. However, it’s still in its growth phase, reflected by an increased segment loss. This is common for new ventures requiring significant upfront investment before reaching profitability.
Similarly, **Healthcare** also saw revenue growth but continues to incur losses, indicating it’s still building its operational base. The overall increase in the Group’s year-to-date profit before tax, despite a revenue decline, was significantly bolstered by higher other income (including non-recurring forfeiture income) and lower finance costs, which helped offset the increased losses from the newer segments.
Financial Health & Cash Flow
A look at the balance sheet and cash flow statements reveals more about Sunsuria’s financial standing.
As at 31 March 2025
Total Assets: RM2,278.40 million
Total Equity: RM1,073.53 million
Net Assets Per Share: RM1.15
Total Borrowings: RM642.60 million
Cash & Cash Equivalents: RM154.67 million
As at 30 September 2024 (Audited)
Total Assets: RM2,221.90 million
Total Equity: RM1,058.59 million
Net Assets Per Share: RM1.14
Total Borrowings: RM570.36 million
Cash & Cash Equivalents (start of period for cash flow): RM192.26 million
Total assets increased by 2.54% and total equity grew by 1.41% since September 2024, leading to a slight rise in net assets per share. This indicates a growing asset base and shareholder value.
From a cash flow perspective, net cash from operating activities for the six months ended 31 March 2025 was RM27.25 million, a decrease from RM71.84 million in the corresponding period last year. This was largely due to changes in working capital. The Group also saw a significant increase in net cash used for investing activities, with an outflow of RM126.27 million compared to RM13.63 million previously. This higher outflow was driven by substantial expenditure on land for property development, investment in associates, and acquisition of property, plant, and equipment, signaling strategic expansion. However, net cash from financing activities turned positive, with an inflow of RM61.39 million, primarily from the drawdown of new borrowings, offsetting some of the investing outflows. Overall, this resulted in a net decrease in cash and cash equivalents of RM37.63 million for the period.
Dividend Announcement
For shareholders, it’s important to note that a single-tier second interim dividend of 1 sen per ordinary share for the financial year ended 30 September 2024, amounting to RM8,959,173, was paid on 31 December 2024. This reflects the company’s commitment to returning value to its shareholders.
Risk and Prospect Analysis: Navigating the Future
Sunsuria Berhad operates within a challenging yet evolving economic landscape. While Malaysia’s economy is projected to grow positively in 2025, driven by resilient domestic demand, the property sector continues to face significant headwinds. These include persistent inflationary pressures, an ongoing oversupply in certain market segments, and restrained consumer confidence. Furthermore, potential global trade disruptions, such as proposed hikes in US tariffs, could impact external trade performance and dampen overall investor sentiment, creating a degree of uncertainty for the broader economy.
Despite these challenges, Sunsuria remains proactive and strategic. The company is committed to vigilant and cost-efficient management of its project launches, alongside a rigorous evaluation of potential investments across its diverse business segments. This cautious yet opportunistic approach is crucial for navigating the current market conditions.
Looking ahead, Sunsuria has already taken significant steps to bolster its future growth pipeline:
- **Strategic Partnership with Kwasa Land:** In April 2025, the Group partnered with Kwasa Development (13) Sdn. Bhd., a subsidiary of Kwasa Land Sdn. Bhd., to embark on a new residential development. This project has an estimated gross development value (GDV) of RM492 million, with the first phase anticipated to launch in the third quarter of 2026. This collaboration with a prominent land developer signals confidence in the long-term potential of the property sector.
- **Significant Landbank Expansion:** In May 2025, Sunsuria completed the acquisition of approximately 1,776.63 acres of leasehold land in Perak. This substantial land acquisition marks a significant expansion of the property development division’s landbank, providing a strong foundation for future projects and long-term growth.
The Group’s strategy involves continuously exploring value-added partnerships and identifying new development opportunities in strategic locations to enhance its development pipeline. Additionally, Sunsuria aims to actively pursue collaborative opportunities that drive sustainable growth and create added value by integrating its healthcare, education, and retail components into its property developments. This integrated approach could differentiate its offerings and create more resilient ecosystems within its projects.
Summary and
Sunsuria Berhad’s latest financial report paints a picture of a company actively adapting to market realities. While the quarterly revenue saw a decline due to project timelines and previous completions, the year-to-date profit before tax managed to grow, primarily driven by strategic financial management and contributions from other income sources. The significant increase in profit attributable to owners and basic earnings per share, both quarterly and year-to-date, is a positive sign for shareholders, indicating improved returns on equity.
The company’s expansion in its education segment, despite initial losses, shows a commitment to diversifying revenue streams. More importantly, the recent land acquisitions and strategic partnerships in property development underscore a robust long-term growth strategy, positioning Sunsuria to capitalize on future market upturns. The payment of dividends further reflects the company’s focus on shareholder returns.
However, it’s important to acknowledge the prevailing headwinds in the property sector, including oversupply and consumer sentiment, which will require continued vigilance. The Group’s focus on managing project launches strategically and integrating its diverse components is key to navigating these challenges.
Key points to consider for the future:
- The property development segment’s ability to maintain or grow profitability despite revenue fluctuations will be crucial.
- The timeline and success of new projects, especially the Kwasa Land partnership and developments on the newly acquired Perak land, will dictate future revenue streams.
- The pace at which the education and healthcare segments can transition from growth-phase losses to profitability will impact overall group earnings.
- The Group’s ongoing strategy to integrate its various business components (property, education, healthcare, retail) for synergistic value creation.
What are your thoughts on Sunsuria’s strategic landbank expansion and its diversification efforts? Do you believe their integrated approach can provide a sustainable competitive edge in the challenging property market? Share your insights in the comments below!
For more in-depth analysis on Malaysian companies, be sure to check out our other articles:
- [Link to related article 1]
- [Link to related article 2]
