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2025-08-01 16:51:04
MARC maintains Sunway Group's credit rating at "stable" despite slowing new project sales and rising debt, despite a strong project pipeline. (1) Malaysian rating agency MARC has affirmed the ratings of several Sunway Group issuances, all with a "stable" outlook. (2) These include Sunway Berhad's RM2 billion commercial paper/medium-term note program (MARC-1/AA-), RM5 billion perpetual Islamic bond program (AIS), and Sunway Khazanah Sukuk Sdn Bhd's RM10 billion Islamic medium-term note program (AA-IS). (4) Sunway Group's solid market position and strong operating track record in the real estate and construction sectors are key strengths of its ratings. (5) Sunway Group had approximately RM4 billion in unbilled sales as of the end of the first quarter of 2025, providing earnings visibility for the next three years. (6) However, execution risks associated with the group's growing borrowings and business expansion, particularly in its international property development and domestic healthcare sectors, continue to weigh on its credit profile. 7. In the first quarter of 2025, the Group's revenue increased by 66.8% to RM2.4 billion, and pre-tax profit increased to RM304.1 million. 8. Meanwhile, total borrowings increased by RM381.9 million to RM11.3 billion, maintaining a debt-to-equity ratio of 0.70 times. 9. Furthermore, theme park visitor numbers decreased to 430,000 from 515,000 in the same period last year. 10. The healthcare division's profit decreased slightly from RM36.8 million to RM31.8 million, primarily due to startup losses at the new hospital.
