As the bungalow development was already completed, all proceeds would immediately reduce the company’s current net borrowings of RM346.7mil, said executive chairman Tong Kooi Ong.
On new projects, he said Sunrise would time and price future property launches based on prevailing market conditions.
“We will take into consideration what the market demands are when establishing our costs and product mix,” he said at an analysts briefing yesterday.
The high-end segment would take longer to recover from the current economic downturn, Tong said, adding that there would be greater demand for affordable properties.
“We have a range of potential projects that we can scale up or down depending on the market situation,” he said.
Among the developments in the pipeline are its MK 20 and MK 28 projects within the Mont’ Kiara area and its Solaris Towers project off Jalan Sultan Ismail in Kuala Lumpur.
Tong said Sunrise would launch one of these projects by 2010.
On another note, Tong said the company’s directors had yet to decide whether to declare dividends for the financial year ending June 30.
“We are still undecided. While people buy shares because of the dividends, for this year, we feel that would not be the best decision. We feel our shareholders will benefit more if we invest in assets instead.”
Tong hinted that Sunrise was looking to purchase land for development purposes within Kuala Lumpur but outside the Mont’ Kiara area.
Meanwhile, the company’s net profit for the third quarter ended March 31 surged 48% to RM30.57mil from RM20.64mil in the previous corresponding period.
Revenue rose 5.3% to RM165.22mil against RM156.96mil previously.
The rise was attributed to new sales of some of its property projects, primarily 11 @ Mont’ Kiara and 10 @ Mont’ Kiara. For the nine months ended March 31, Sunrise chalked up new property sales amounting to RM247mil.
“As of March, we have unbilled sales totalling RM965mil which will underpin earnings until end-2011,” Tong said.
By The Star
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