KUALA LUMPUR (May 25): Sunway Bhd's net profit for the first quarter ended March 31, 2021 (1QFY21) slipped 6% to RM58.45 million from RM62.4 million in the corresponding quarter last year, amid lower contributions from its property and property investment segments.

The group's revenue rose 4.7% to RM1.02 billion from RM971.44 million, as it registered higher contributions from most business segments save for its property development and property investment segments.

In a bourse filing, it said the hospitality and leisure businesses under the property investment segment continued to be impacted during the current quarter due to the resurgence of Covid-19 cases and the reinstatement of the Movement Control Order (MCO 2.0) from Jan 13 to March 4, 2021, which called for the closure of the theme park operations, more stringent social distancing requirements and restrictions on interstate travels.

It also noted that due to the adoption of MFRS 15, the development profits of two of the group's Singapore property development projects, which were launched recently, will only be recognised upon completion and handover of the projects.

Compared with the immediate preceding quarter, the diversified conglomerate's net profit sank 70% from RM193.07 million in 4QFY20, while revenue fell 20.2% from RM1.27 billion.

"The group is hopeful that the pandemic can be brought under control with the progressive roll-out of the mass vaccination programme by the government in the short to medium term. Such an outcome will augur well for the group going forward, as the economic recovery will be more sustainable, which will be further supported by the recovering global economy and accelerated fiscal stimulus spending by the government.

"Barring any unforeseen circumstances, the group expects the financial performance of this year to be satisfactory," it noted.

Sunway shares closed 2.35% or four sen lower at RM1.66, valuing the group at RM8.19 billion.