Sunrise Has RM971 Mln In Unbilled Property Sales

Property developer, Sunrise Bhd, has unbilled sales totalling RM971 million as at June 30, 2009, which will underpin earnings till 2011, says executive chairman Tong Kooi Ong.

It excludes sales of RM39.3 million recognised in July 2009 and another RM157.1 million sales pending sales and purchase agreement signing.

Most unbilled sales are from higher margin projects, he said.

"Profits from future billings will be recognised over the next two financial years and will sustain earnings in the near future," he told a briefing on the company's 2009 financial year results Friday.

Sunrise recorded RM205.8 million in pre-tax profit for the year ending June 30, 2009, up by two per cent from RM201.1 million in the previous year.

Turnover rose 17 per cent to RM803.9 million from RM685.8 million previously.

One-off gains from the sale of office, retail and car park space at Plaza Mont' Kiara and an Australian asset amounted to RM19.4 million in the financial year compared with RM46.6 million in the previous financial year.

He said profits for the year ended was boosted by progress billings for the group's ongoing developments, notably 10 Mont'Kiara and Solaris Dutamas, as well as sales of fully completed luxury bungalows at Mont'Kiara Residence.

Going forward, Tong said the property market seemed stronger than what it was a year ago.

"We don't see a property bubble in Malaysia. There are no major shocks and the global economy is showing signs of recovery and sentiment for properties has improved in recent months," he said.

Among the supportive factors for the property market are low unemployment, ample liquidity, approval for mortgage is resilient and low interest rates.

He however cautioned that there are various pockets of oversupply around the KLCC area.

The challenge forward is to manage cost and on-time delivery, he said, adding that Sunrise was re-inventing itself to stay ahead.

"We have a pipeline of projects ready to be launched, depending on market conditions, and we will continue to widen product mix and market reach, and build and price what the market demands," said Tong.

Besides projects within Mont'Kiara, Sunrise also has one project waiting to be launched in the heart of Richmond, Vancouver, Canada.

He said Sunrise is also in the midst of talks to acquire more land bank within the Klang Valley.

"There could be some purchases by end of the year," he said, but declined to reveal details, saying that talks are still at preliminary stage.

Source: Bernama 14 August 2009