Tuesday, Jun 17, 2003
MARC has affirmed the long-term Islamic corporate debt rating of AID (Single A, Islamic Debt Securities) and short-term Islamic corporate debt rating of MARC-2ID assigned to Sunrise Berhad’s RM70 million Islamic Medium Term Notes and Murabahah Notes Issuance Facility and RM100 million Bai’ Bithaman Ajil Notes Issuance Facility respectively. The affirmed ratings reflect the commendable position of Sunrise as a reputable and award-winning property developer, and the company’s resilient financial position. The ratings also reflect the anticipated strong cash flow generation capacity of the Mont’Kiara development over the next eight to ten years, which would outweigh the moderate response to Sunrise’s Seremban Forest Heights (SFH) development in the state of Negri Sembilan.
The Mont’Kiara development earned Sunrise its reputation as the leading condominium developer in Malaysia. Property development will continue to be the main revenue contributor to the group with revenue from facilities and maintenance management supporting its revenue base.
Sunrise commands a strong market position as a result of its development expertise and marketing, quality workmanship and its ability to complete developments ahead of schedule. Its current stock of development land at Mont’Kiara is sufficient to sustain development over the next eight to ten years. While the property outlook in general remains subdued as a result of the inventory overhang and recent developments in the global environment, MARC believes that the Mont’Kiara development will continue to experience solid sales performance.
Sunrise’s earnings and profitability for FY2002 were largely driven by the launch of its Damai and Laman Suria condominiums and The Residence bungalow lots in Mont’Kiara. Its operating margin is high by industry standards, averaging 37.2% in the last three years. The company’s low cost position, coupled with its ability to command a premium for its condominium units are key factors behind Sunrise’s resilient margins.
Sunrise’s cash flow protection measures have been at comfortable levels over the last three years, largely attributed to the higher premium earned from its condominium units and its ability to complete projects ahead of schedule. Debt servicing capability is expected to remain strong with projected debt service coverage averaging 4.89 times during the remaining tenure of the Facilities.
The company maintains a moderate gearing policy, aided by strengthening profit retention. In the absence of new borrowings, the debt/equity ratio is expected to peak at 0.52 times (upon full drawdown of the Facilities) before gradually declining over the tenure of the Facilities.
The Mont’Kiara development earned Sunrise its reputation as the leading condominium developer in Malaysia. Property development will continue to be the main revenue contributor to the group with revenue from facilities and maintenance management supporting its revenue base.
Sunrise commands a strong market position as a result of its development expertise and marketing, quality workmanship and its ability to complete developments ahead of schedule. Its current stock of development land at Mont’Kiara is sufficient to sustain development over the next eight to ten years. While the property outlook in general remains subdued as a result of the inventory overhang and recent developments in the global environment, MARC believes that the Mont’Kiara development will continue to experience solid sales performance.
Sunrise’s earnings and profitability for FY2002 were largely driven by the launch of its Damai and Laman Suria condominiums and The Residence bungalow lots in Mont’Kiara. Its operating margin is high by industry standards, averaging 37.2% in the last three years. The company’s low cost position, coupled with its ability to command a premium for its condominium units are key factors behind Sunrise’s resilient margins.
Sunrise’s cash flow protection measures have been at comfortable levels over the last three years, largely attributed to the higher premium earned from its condominium units and its ability to complete projects ahead of schedule. Debt servicing capability is expected to remain strong with projected debt service coverage averaging 4.89 times during the remaining tenure of the Facilities.
The company maintains a moderate gearing policy, aided by strengthening profit retention. In the absence of new borrowings, the debt/equity ratio is expected to peak at 0.52 times (upon full drawdown of the Facilities) before gradually declining over the tenure of the Facilities.