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“Sunsuria reported lower 1HFY2026 earnings due to completed projects but strengthened its future pipeline through the RM2.75 billion KL City Gateway TOD acquisition.”
Kuala Lumpur, 26th May 2026, 2.30pm – Sunsuria Bhd reported lower revenue and earnings for the first half of its financial year ended March 31, 2026 (1HFY2026), primarily due to the completion of several key property developments that reduced progressive revenue recognition. However, ongoing projects, recurring income contributions and the strategic acquisition of a controlling stake in KL City Gateway Sdn Bhd (KLCG) are expected to support the group’s future growth trajectory.
Quarterly Earnings Supported by Improved Project Mix
For the second quarter ended March 31, 2026 (2QFY2026), Sunsuria recorded revenue of RM120.61 million, a 4.2% decline from RM125.93 million in the corresponding quarter last year.
Profit before tax (PBT) remained largely stable at RM14.04 million compared with RM14.16 million a year earlier.
Net profit attributable to shareholders fell to RM5.69 million from RM8.10 million previously, mainly due to a higher effective tax rate during the quarter.
Despite the year-on-year decline, Sunsuria delivered a stronger quarter-on-quarter performance. Revenue increased from RM118.04 million in the preceding quarter, while PBT surged 88% from RM7.47 million, supported by a more favourable project mix and improved gross profit margins.
Project Completions Impact Property Development Revenue
The softer year-on-year performance was mainly attributed to the completion of several Klang Valley developments, including:
- Bangsar Hill Park Verdura
- Sunsuria Forum Corporate Suites
- Bangsar Hill Park Block A
The completion and handover of these projects reduced progressive billings from the group’s property development division, which remains Sunsuria’s primary earnings contributor.
For the six-month period, the property development segment generated PBT of RM44.35 million, compared with RM54.07 million recorded in the corresponding period last year.
Partially offsetting the decline were stronger contributions from ongoing developments such as:
- Bangsar Hill Park Talisa
- Sunsuria Kejora Business Park (Semi-D Industrial Phase 1)
- Sunsuria City – The Chapter
The education division also recorded improved performance, driven by higher student enrolment at Concord College International School.
Forum Mall Begins Contributing Recurring Income
Sunsuria’s recurring income portfolio received a boost following the commencement of operations at Sunsuria Forum Mall in December 2025.
The property investment division has started contributing revenue to the group, although initial earnings were affected by higher operating expenses and financing costs associated with the mall’s tenant onboarding and operational ramp-up phase.
First-Half Results Reflect Transition Period
For the six months ended March 31, 2026, group revenue declined 16.1% to RM238.65 million from RM284.31 million a year earlier.
PBT fell 42.4% to RM21.51 million, compared with RM37.35 million in the previous corresponding period, largely reflecting the completion of major development projects.
Nevertheless, operating cash flow strengthened significantly, with net cash generated from operating activities rising to RM35.76 million from RM27.25 million previously.
As at March 31, 2026, total borrowings stood at RM791.63 million, comprising:
- RM556.54 million in long-term borrowings
- RM235.09 million in short-term borrowings
This included RM93 million worth of Islamic commercial papers issued during the financial period.
Meanwhile, net assets per share improved slightly to RM1.21 from RM1.20 as at Sept 30, 2025.
No dividend was declared for the period under review.
KL City Gateway Acquisition Strengthens Development Pipeline
A major post-quarter development was Sunsuria’s acquisition of an additional 41% stake in KL City Gateway Sdn Bhd on April 10, 2026.
The RM21.46 million acquisition increased Sunsuria’s shareholding in KLCG to 61%, making it a subsidiary of the group.
KLCG is currently developing a 9.66-acre integrated transit-oriented development (TOD) in Kuala Lumpur city centre.
The project’s first phase 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.
The acquisition also strengthens Sunsuria’s exposure to strategically located urban developments and enhances its recurring-income and development pipeline.
Cautious Outlook Amid Rising Cost Pressures
Looking ahead, Sunsuria said it will maintain a prudent approach toward project launches and execution while monitoring market conditions closely.
The group highlighted that ongoing geopolitical tensions in the Middle East continue to exert inflationary pressure on construction materials, logistics and operational costs.
Management said it remains focused on balancing growth opportunities with cost management, while leveraging its ongoing projects, investment properties and newly acquired development assets to support long-term value creation.
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