Sunrise 1Q net profit up 24% to RM37.3m

KUALA LUMPUR: SUNRISE BHD's net profit rose 24% to RM37.3 million from RM30.2 million a year ago as earnings were sustained by progress billings for its ongoing developments.

The company said today that pre-tax profit rose 17% to RM50.2 million from RM42.8 million while revenue was RM190.3 million compared with RM198.2 million a year ago. Earnings per share were 7.52 sen versus 6.37 sen a year earlier.

"The company's earnings continue to be sustained by progress billings for our ongoing developments, namely 10 Mont'Kiara, 11 Mont'Kiara and Solaris Dutamas, as well as sales of 11 Mont'Kiara and the completed Mont'Kiara Residence bungalows. The y-o-y growth in profitability was also driven by lower operating costs," it said.

Sunrise said the strong sales momentum continued into the quarter, with the company chalking up RM147 million in sale-and-purchase-agreement-signed sales.

As for sentiment for property, the company said it was boosted by the global economic recovery, low interest rates and the global stock market rally.

Providing an update on its projects, Sunrise said construction of ongoing projects was progressing well. Solaris Dutamas and 10 Mont'Kiara are due for completion in the current financial year and 11 Mont'Kiara in 2011.

It said Solaris Dutamas, its first integrated commercial-residential development, would transform the Dutamas area into an engaging and lively hub.

Sunrise added the development, targeted for completion in stages up to mid-2010, would house an exciting differentiated retail offering which will open in end-2010.

"Going forward, the company has substantial unbilled sales of RM870 million as at Sept 30, which will sustain earnings in the current and following financial year," it added.

Sunrise plans to launch several new residential and commercial projects in the near future in order to sustain longer-term profits.

Its first and final dividend of three sen per share for financial year 2009 was approved by shareholders at the AGM on Oct 29 and would be paid on Dec 10.

At the AGM, shareholders voted favourably on the company's "Say on Pay" proposal. Sunrise said the proposal, a first for corporate Malaysia, underscored its commitment to corporate governance and shareholder accountability.

By The EDGE Malaysia (by Joseph Chin)