PETALING JAYA (May 26) — Sunsuria Bhd posted lower revenue and earnings for the first half of FY2026 ended March 31, 2026, mainly due to the completion of several key development projects that reduced progressive revenue recognition from its property development division. However, the group recorded stronger quarter-on-quarter performance, improved operating cash flow, and expanded its future growth pipeline through a strategic acquisition in Kuala Lumpur.
For the quarter under review, revenue declined 4.2% year-on-year to RM120.61 million from RM125.93 million, while profit before tax (PBT) eased marginally to RM14.04 million from RM14.16 million. Net profit attributable to shareholders fell to RM5.69 million from RM8.10 million, primarily due to a higher effective tax rate.
Despite the softer year-on-year performance, Sunsuria achieved a significant improvement compared to the preceding quarter. Revenue increased from RM118.04 million in the previous quarter, while PBT surged 88% from RM7.47 million, supported by a better project mix and stronger gross profit margins.
The decline in revenue compared to a year earlier was mainly attributed to the completion of Bangsar Hill Park Verdura, Sunsuria Forum Corporate Suites and Bangsar Hill Park Block A. With these projects reaching completion, revenue contribution from progressive construction recognition naturally tapered off.
Nevertheless, ongoing developments continued to support earnings. These included Bangsar Hill Park Talisa, Sunsuria Kejora Business Park – Semi-D Industrial Phase 1, and Sunsuria City The Chapter, which contributed higher revenue as construction progressed and sales recognition increased.
Beyond property development, Sunsuria’s education segment recorded stronger performance, driven by higher student enrolment at Concord College International School. The growth highlights the group's efforts to diversify its income streams beyond property development.
Another notable milestone during the period was the commencement of operations at Sunsuria Forum Mall in December 2025. The mall began contributing recurring income to the group, although the property investment division incurred higher operating and financing expenses as the asset progressed through its tenancy and operational ramp-up phase.
For the six months ended March 31, 2026, group revenue declined 16.1% to RM238.65 million from RM284.31 million, while PBT fell 42.4% to RM21.51 million from RM37.35 million. The weaker performance largely reflected the completion of major projects and the resulting reduction in development revenue recognition.
Despite lower profits, Sunsuria generated stronger cash flow. Net cash from operating activities improved to RM35.76 million compared with RM27.25 million in the corresponding period last year, indicating healthy operational cash generation.
As at March 31, 2026, total borrowings stood at RM791.63 million, comprising RM556.54 million in long-term borrowings and RM235.09 million in short-term borrowings. This included RM93 million worth of Islamic commercial papers issued during the period. Meanwhile, net assets per share improved slightly to RM1.21 from RM1.20 at the end of September 2025. No dividend was declared for the period.
A major strategic development took place after the reporting period when Sunsuria completed the acquisition of an additional 41% stake in KL City Gateway Sdn Bhd on April 10, 2026, for RM21.46 million. The acquisition increased Sunsuria’s ownership to 61%, making the company a subsidiary.
KL City Gateway is developing a 9.66-acre integrated transit-oriented development (TOD) in Kuala Lumpur city centre. Phase 1 alone carries an estimated gross development value (GDV) of approximately RM2.75 billion and is expected to contribute positively to the group’s earnings over the medium to long term.
Looking ahead, Sunsuria said it will continue to adopt a measured approach to project launches and execution. The group remains cautious about rising construction material prices and operating costs, which have been influenced by ongoing geopolitical tensions and inflationary pressures globally.
Key Takeaways
Earnings were affected by the completion of several major development projects, resulting in lower revenue recognition.
Quarter-on-quarter performance improved significantly, reflecting stronger project contributions and margins.
Ongoing developments continue to provide earnings visibility.
The education segment and Forum Mall are strengthening Sunsuria’s recurring income base.
Operating cash flow improved despite lower reported profits.
The acquisition of KL City Gateway significantly enhances the group’s future development pipeline with a RM2.75 billion Phase 1 GDV.
Rising construction costs and inflation remain key challenges to monitor.
Overall, Sunsuria appears to be transitioning from a period of project completions toward a new growth phase supported by active developments, recurring income assets and a larger city-centre development pipeline.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 26 May 26
Malaysia