One thought on “MARKET MATTERS: INSIDER ASIA’S STOCK OF THE DAY”

  1. On the property development, Suria takes a passive role while its partners are the ones (albeit relatively new/small developers) who bear the risks including the execution risk. Suria provides the KK land and gets 17-18% of the GDV — either in cash or in kind e.g. new HQ or retail mail etc. With the support of the state government, the JQ project is intended to diversify the state's economy from commodities to tourism. These property development revenue are treated as non-recurring and extraordinary. Upon completion of the two projects, Suria may enjoy recurring income from renting out its new corporate office and retail mail.

    The abnormally high level of earnings in 2Q15 is because of the non-recurring gain from JQ project. You need to normalise its accounts and compare its core earnings y-y so not to mislead the viewers.

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