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Thursday, July 21, 2011

Sunway City - The most profitable company in the property and REIT sectors

From left to right: The Edge chairman Datuk Tong Kooi Ong; Minister at the Prime Minister's Department Yang Berhormat Datuk Seri Idris Jala; Sunway City Berhad director of strategic & corporate development Sarena Cheah and OCBC Bank (Malaysia) director and CEO Jeffrey Chew.

Sunway City Berhad (Sunway City) was recognized at the Edge Billion Ringgit Club Corporate Awards Gala Dinner 2011 as the most profitable company with highest return of equity over three years in the property and REIT sectors. Sunway City received the award from Minister at the Prime Minister’s Department, Yang Berhormat Datuk Seri Idris Jala who graced the prestigious event held at the Shangri-La.

The Edge Billion Ringgit Club (BRC) inductees are the best companies listed on Bursa Malaysia with at least RM1 billion in terms of market capitalisation on March 31 each year, or turnover for the immediate preceding year. Sunway City, Sunway Holdings Berhad and Sunway REIT are members of The Edge Billion Ringgit Club 2011. While membership in the Edge Billion Ringgit Club is automatically open to companies that meet the criteria, the awards are based on performance.

Sunway City was incorporated as a private limited company in Malaysia in 1982, and was converted to a public listed company in 1995 and currently has a market capitalization of over RM2.3 billion. Last year, Sunway City had made its mark in the industry by becoming the first integrated real estate conglomerate when it successfully listed Sunway REIT on the Main Market on the Bursa Malaysia – the largest REIT in Malaysia in terms of market cap and asset value. Today, it has a market capitalization of RM3.0 billion.

The company’s major financial achievements include a surge of 143% in share price from Jan 1 2007 to June 30 2011, from RM 2.21 to RM 5.38. Profit attributable to equity holders (PATMI) had increased from RM 155.8 mil in FYE 30 June 2007 to RM 542 mil in FYE 31 Dec 2010, while basic earnings per share increased from 35.19 sen in FYE 20 June 2007 to 115.32 sen in FYE 31 Dec 2010 representing a CAGR of over 40% p.a. Net assets per share grew from RM3.06 per share in FYE 30 June 2007 to RM 5.53 per share in FYE 31 Dec 2010 representing a CAGR of approx 20% p.a. It had rewarded its shareholders with the highest gross dividend declared since its listing amounting to 31 sen per share for FYE 31 Dec 2010.

“We are privileged indeed to receive this recognition which underscores Sunway City’s commitment to deliver and create value for our shareholders. We attribute our extraordinary performance to visionary leadership, perceptive and transparent corporate policies; as well as synergistic and passionate teamwork which compound the bulwark of the company’s continuous progress,” said Sunway City Berhad managing director - property investment Datuk Ngeow Voon Yean.

“Sunway City will continue to strive to perform all our economic functions in the most efficient and productive manner, employing optimal use of current technology. We will continue to protect our shareholder’s investments, and provide them a sustainable return, and give them confidence in our corporate governance through transparency and accountability,” said Sunway City Berhad managing director - property development, Malaysia Ho Hon Sang.

“The merger between Sunway City and Sunway Holdings will unlock even more value for all shareholders through the creation of a streamlined platform for expansion of the property and construction businesses, as well as realisation of synergies within the Group,” he added.

Sunway Berhad, as a result of the merger, is expected to be listed on the Main Market of Bursa Malaysia in August. The exercise will create a single, more sizeable integrated regional property-construction player which shall create economies of scale and synergies as well as greater brand clarity for going to market and to attract talent.

The new entity will be one of the largest property-construction players with strong presence in the region, with total assets amounting to RM7bil, a land bank of 2,200 acres with a total GDV of approximately RM 25bil and a market capitalization of over RM 3.5bil, propelling Sunway to be one of the top five property and construction companies listed on Bursa by market cap.

The enlarged entity will translate to an optimized access to capital markets through an expected increase in liquidity which will command greater investor interest. The company is also expected to enjoy lower financing cost with enhanced cash management. It’s larger and stronger balance sheet will also empower the Group to bid for larger and more profitable projects.

By The Star

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