KUALA LUMPUR: Sunway Bhd’s net profit for the second quarter ended June 30, 2018 declined to RM215.76 million from RM232.01 million recorded in the same period last year.
Revenue, however, rose to RM1.28 billion from RM1.24 billion previously primarily due to higher contributions from the construction and trading and manufacturing segments, it said in a filing to Bursa Malaysia today.
It said the lower profit was mainly due to the adoption of Malaysian Financial Reporting Standard 15 on one of the company’s Singapore property development projects, for which the company can only recognise the development profits upon its completion.
As a result, it said the progressive profits of RM28.3 million from the project has to be deferred accordingly.
Going forward, it said the new government’s commitment to and efforts to improve governance, accountability and transparency would boost domestic consumer and business confidence and help to underpin the economic growth momentum going forward.
“Such positive development will augur well for the company’s diverse yet complementary businesses,” it said, adding the company is expected to continue to deliver satisfactory performance for the second half of this year.