Thursday, Oct 27, 2005
MARC has reaffirmed Sunrise’s short term rating of Murabahah Notes Issuance facility (MUNIF), Islamic Medium Term Notes and Bai’Bithaman Ajil Notes Issuance facility at MARC-1ID and A+ID respectively, reflecting Sunrise’s good financial track record with operating margins averaging 25% in the last four years, low debt leverage position and good financial flexibility. The rating is also underpinned by the company’s established position as a renowned and successful high-end condominium developer, with a list of new launches, promising strong cash flow generation capacity, going forward. A moderating rating factor would be the cyclical nature of the property industry.
Sunrise continued on its commendable performance in FY2005 with a number of new launches mainly under Mont’Kiara development. Its ability to price its properties at a premium to its competitors and strong sales in all its launches is testimony of the company’s competitive edge. Strong brand name, loyal customer following, quality finishing, award winning designs, timely delivery of products and superior after sales support are attributes that will ensure Sunrise maintains its competitive edge over the competition, evident in the commendable take-up rates of its projects in Mont’Kiara.
For FY2005, the group recorded another positive performance by recording a 41.9% growth in turnover compared to the previous year and 186% jump in pre-tax profit from RM52.5 million to RM150.2 million. This impressive performance is mainly driven by its on-going projects namely, Mont’Kiara Aman, Kiara Designer Suites, Banyan and its mixed shop and office suite development, Solaris Mont’Kiara. Cost savings from the recently completed condominium, Mont’Kiara Damai also contributed to the higher profits for the period. Revenue from the other segments represented a small proportion of recurring income, amounting to 7.7% of the group’s total revenue for the year.
OPBIT interest coverage ratio increased significantly in FY2005 compared to the previous year due to significant improvements in working capital. The CFO interest and debt coverage ratios continued to show comfortable position. The group’s DSCR reduced to 4.04x mainly due to the early partial redemption of Sunrise’s Bai Bithaman Ajil facility.
The group’s debt leverage position remained stable for FY2005, in tandem with the profitable position. Total debt level rose to 17.2% compared to FY2004 due to the drawdown of RM50 million from its term loan despite an early redemption of its Tranche 1 BBA facility amounting to RM20 million during that year.
Notwithstanding the increase in total debt level, Sunrise’s debt leverage ratio improved marginally in FY2005 to 0.36x from 0.37x in FY2004 due to an 18.7% rise in shareholders’ funds. The favourable debt leverage position is well within the 1.0 time debt-equity cap stipulated under the issue structure.
Sunrise continued on its commendable performance in FY2005 with a number of new launches mainly under Mont’Kiara development. Its ability to price its properties at a premium to its competitors and strong sales in all its launches is testimony of the company’s competitive edge. Strong brand name, loyal customer following, quality finishing, award winning designs, timely delivery of products and superior after sales support are attributes that will ensure Sunrise maintains its competitive edge over the competition, evident in the commendable take-up rates of its projects in Mont’Kiara.
For FY2005, the group recorded another positive performance by recording a 41.9% growth in turnover compared to the previous year and 186% jump in pre-tax profit from RM52.5 million to RM150.2 million. This impressive performance is mainly driven by its on-going projects namely, Mont’Kiara Aman, Kiara Designer Suites, Banyan and its mixed shop and office suite development, Solaris Mont’Kiara. Cost savings from the recently completed condominium, Mont’Kiara Damai also contributed to the higher profits for the period. Revenue from the other segments represented a small proportion of recurring income, amounting to 7.7% of the group’s total revenue for the year.
OPBIT interest coverage ratio increased significantly in FY2005 compared to the previous year due to significant improvements in working capital. The CFO interest and debt coverage ratios continued to show comfortable position. The group’s DSCR reduced to 4.04x mainly due to the early partial redemption of Sunrise’s Bai Bithaman Ajil facility.
The group’s debt leverage position remained stable for FY2005, in tandem with the profitable position. Total debt level rose to 17.2% compared to FY2004 due to the drawdown of RM50 million from its term loan despite an early redemption of its Tranche 1 BBA facility amounting to RM20 million during that year.
Notwithstanding the increase in total debt level, Sunrise’s debt leverage ratio improved marginally in FY2005 to 0.36x from 0.37x in FY2004 due to an 18.7% rise in shareholders’ funds. The favourable debt leverage position is well within the 1.0 time debt-equity cap stipulated under the issue structure.