Following its eleventh Annual General Meeting (“11th AGM”) today, UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) announced its achievements for 2018, having delivered an improvement in its financial results, driven by disciplined operational performance and placing customers at the heart of its business.
Tan Sri Dato’ Sri Zamzamzairani Mohd Isa, Chairman of UEM Sunrise said, “The property sector looks set to be tough and continue in much the same vein as it did in 2018, hence we will be more cautious and selective with regards to our product launches. Despite the challenges, we also see opportunities and will continue to offer our unique brand value propositions. We will maintain our current focus on mid-market landed developments accentuated by more up-market projects in strategic locations”.
UEM Sunrise will continue to strengthen its resilience against the backdrop of the current
challenging property market environment by improving the efficiency of its operations and prioritising cost controls to improve margins. Through the execution of its priorities, the Company aims to deliver sustainable shareholder value, build profitability and make a positive impact in the communities in which it operates. It will exercise prudence in its product launches and remain pragmatic in its targets in view of the soft property market. The Company is determined to build encouraging operational and financial performance to drive further efficiencies across the business and will continue to build great homes and projects for its customers, creating jobs and supporting economic growth while delivering the expected results both operationally and financially to its shareholders.
UEM Sunrise recently announced its financial results for the first quarter ended 31 March 2019.
Commenting on the financials, Mohamed Rastam Shahrom/Chief Financial Officer said, “Total revenue recorded for the period increased to RM419.3 million compared to RM287.7 million in the corresponding quarter in 2018 in view of the recognition of ongoing local developments as well as the settlement of the Company’s developments in Melbourne, Australia, the majority of which is from Conservatory. Profit after tax and non-controlling interests for the period increased to RM30.1 million, a rise of 19% compared to RM25.3 million in the last quarter on account of the strong revenue growth and gains from cost-savings initiatives”.
He added, “We continue to attain a very good settlement rate for our Australian projects, with Conservatory achieving a settlement rate of 73% for all units sold to-date allowing us to settle all its project financing. We are also currently handing over separable portion 4,
or SP4 of our Aurora Melbourne Central with a GDV of AUD277.6 million starting from 17 May 2019. As at 28 May, we have already achieved a settlement rate of 89%. Our SP5 with a GDV of AUD241.2 million will be handed over to the buyers for settlement in September
2019. We expect to fully repay the financing for Aurora Melbourne Central by year end. This will see a further reduction in our gearing position”.
As at to date, the Company has launched projects with a total Gross Development Value (“GDV”) of RM160.0 million. Its unbilled sales as at 31 March 2019 stood at RM4.1 billion.
Building on the strength of the Company’s EVE (Exciting, bringing Value and Easy to own) philosophy, it seeks to anticipate the customers’ evolving needs and continue to improve the efficiency and quality of dealing with them. These are achieved through research, improvements in sales processes and investing in technology.
“We recognise that our quest towards operational excellence and building sustainable communities of the future hinges on our ability to adapt, innovate and integrate digital technologies into our business. It is an exciting time for us, and I have every confidence that UEM Sunrise has what it takes to continue to deliver; enticing homebuyers and community tenants with our unique value propositions,” Tan Sri Dato’ Sri Zamzamzairani Mohd Isa concluded.
UEM EDGENTA’S FIRST QUARTER RESULTS SETS THE PACE FOR FINANCIAL YEAR 2019
UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company released their unaudited first quarter results for the financial period ended 31 March 2019 (“Q1 FY2019”) here today.
The Company recorded a 12.0% revenue increase to RM515.9 million compared to that of the same quarter in FY2018 which stood at RM460.8 million. UEM Edgenta also posted an 8.3% increase in PBT to RM46.0 million compared to the same quarter of FY2018, which was at RM42.5 million.
The increase in revenue for Q1 FY2019 is mainly attributed to the Company’s Asset Management segment, driven by the Healthcare Support division which posted a healthy 19.0% increase from new businesses secured in Malaysia, Singapore and Taiwan. The Healthcare Support division also posted a higher PBT at RM34.5 million, an increase of 19.3% compared to the same quarter of FY2018 which was at RM28.9 million. Recent contract wins include energy performance services at Hospital Kepala Batas (a government hospital which forms part of UEM Edgenta’s hospital support services concession with the Ministry of Health Malaysia),
Revenue growth in the Property & Facility Solutions division moderated in Q1 FY2019 on a Y-o-Y basis as a result of more projects completed in the same quarter of FY2018; however, the Company was able to preserve margins via operational cost efficiencies. The division recently secured the facility management for select WeWork co-working spaces in Singapore and Malaysia, as well as a large-scale fit-out project for Sime Darby Autocity.
Within the Infrastructure Services division, revenue improved to RM172.2 million, a 13.3% Y-o-Y increase compared to FY2018 revenue of RM152.1 million. The revenue derived from this division was mainly due to higher volume of work done on pavement works and traffic management for expressways. However, PBT growth was offset by further operational costs incurred for the new Pavement Research Centre (“PRC”), an investment which is part of the Company’s strategy to service the entire lifecycle value chain. Recently it secured the pavement works for Lebuhraya Pantai Timur 2 and the Karak Highway.
The Asset Consultancy division recorded a slight dip in revenue at RM35.0 million compared to Q1 FY2018 which was at RM35.4 million, due to more projects being completed during this Q1 FY2019 period.
According to MD/CEO of UEM Edgenta Berhad, Dato’ Azmir Merican, the Company’s Q1 FY2019 results have set the pace for the rest of the financial year.
“We are steadily paving the way for continuous growth in the Company by focusing on the rollout of our continuous improvement programmes, which are envisioned to lead to increased operational efficiencies, training and upskilling of our staff, as well as introducing innovative technologies, all of which will add to our cost saving strategies. This will further strengthen our businesses against any operational headwinds faced by the potentially challenging market environment for the rest of FY2019,” said Dato’ Azmir.
He further stated that organisational excellence will also be a focus in FY2019, where UEM Edgenta will continue to emphasise on the development of its human talent which will help drive its performance culture.
For the remaining period of FY2019, the Company’s Asset Management segment, underpinned by the Healthcare Support division will continue to look to secure more contracts in the region, as well as sharing and implementing best practices between the concession and commercial arms of this division.
UEM Edgenta also continues to be optimistic of its prospects in the Infrastructure sector, given the State and Federal authorities’ commitment towards the implementation of several key infrastructure projects. The potential of creating new and better products through the PRC is also part of the Company’s strategy in providing in-house solutions with innovative technologies to increase its value proposition to clients.
UEM Sunrise Announces Revenue of RM419 Million for 1Q 2019
UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the first quarter ended 31 March 2019 (“1Q 2019”) where total revenue recorded for the period increased to RM419.3 million compared to RM287.7 million in the corresponding quarter in 2018 (“1Q 2018”) in view of the recognition of ongoing local developments as well as the completion and settlement of the Company’s developments in Melbourne, Australia, the majority of which is from Conservatory. Profit after tax and non-controlling interests for the period increased to RM30.1 million, a rise of 19% compared to RM25.3 million in 1Q 2018 on account of the strong revenue growth and gains from cost-savings initiatives.
Property development activities accounted for 93% of the total revenue; 59% higher than the property development revenue reported in 1Q 2018 with 57% contributed from international projects followed by 22% from the southern region and 21% central. The largest contributor was Conservatory in Melbourne, followed by Symphony Hills in Cyberjaya and Sefina Residences in Mont’Kiara. Its unbilled sales as at 31 March 2019 stood at RM4.1 billion.
Property development sales for the quarter was RM215.2 million; 54% contributed by the Central region mainly from Symphony Hills, Residensi Astrea and Serene Heights Bangi, followed by 38% from Southern largely from the recently launched mid-market residences Aspira ParkHomes in Gerbang Nusajaya, Almas@Puteri Harbour and Denai Nusantara, while the remaining 8% was from Conservatory.
As at to date, the Company has launched projects with a total Gross Development Value (“GDV”) of RM160.0 million.
Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “Our revenue for this quarter has improved compared to last year’s and the composition is a good mixture of both local and international projects including a small portion generated from our Hyatt House Kuala Lumpur, Mont’Kiara, which we have commenced operations in December last year. Our inventory monetisation campaigns continue to aid the efforts as slightly more than half of the local property development revenue was from completed properties like Symphony Hills, Denai Nusantara and Almas@Puteri Harbour. As for the other ongoing local developments, progress completion is on track. Internationally, the bulk of our property development revenue is from Conservatory. We have completed the entire 446 units and achieved a settlement rate of 73% for all units sold to-date. Its financing has also been settled via the settlement proceeds”.
More on Australia, “Our Aurora Melbourne Central reached its structural peak on 4 April 2019 towering at 289-meter AHD (Australian Height Datum), making it currently the tallest building in Melbourne CBD. Separable portion 3 or SP3, which we handed over starting in September last year, has a settlement rate of 98%. We are currently handing over SP4 in May with a GDV of AUD277.6 million while SP5 with a GDV of AUD241.2 million will be in September”.
Touching on new project launches, “The ideal UEM Sunrise project focuses on customer centricity; EXCITING with unbeatable VALUE and EASY to own. In January 2019, we launched Aspira ParkHomes in Gerbang Nusajaya at a GDV of RM101.8 million. The first phase offers 162 units of double-storey terrace homes priced from RM529,000 per unit. The take up including bookings to-date is 66%. The second phase is targeted for launching in June. On 11 May, we launched Dahlia 2 of Serene Heights Bangi, 74 double-storey terrace homes priced from RM621,000 per unit after considering amongst others, the incentives we have made available under the Home Ownership Campaign 2019 initiated by the Government in early March. Dahlia 2 has a GDV of RM58.0 million. Serene Heights Bangi’s Eugenia 2 is intended for launch in June. For the second half of the year, we plan to launch other similar mid-market products in both Iskandar Puteri as well as the Central region including the much-awaited development in Kepong, towards the end of this year. We also anticipate launching a new commercial development in Gerbang Nusajaya. Notwithstanding our plans, we are mindful of the challenging market environment and remain pragmatic on our RM1.2 billion GDV target. Additional launches depend on market conditions and demand. We will also remain prudent in our sales target of RM1.2 billion”.
PLUS HANDS OVER 10 ENFORCEMENT VEHICLES TO RTD TO ENHANCE HIGHWAY SAFETY
PLUS Malaysia Berhad (PLUS) today handed over 10 Honda CRVs to the Road Transport Department (RTD) as part of an effort to enhance safety on its highways. The vehicles, totaling RM1.3 million, were presented to the Deputy Director General of RTD, Tuan Zamakhshari Hanipah by PLUS Managing Director, Datuk Azman Ismail at Persada PLUS and witnessed by the Deputy Minister of Transport, Dato’ Haji Kamarudin Jaffar and PLUS Chairman, Tan Sri Dato’ Mohd Sheriff Mohd Kassim.
“The presentation of these vehicles will enable PLUS to improve safety on our highways through regular enforcement by the RTD. The handing over of the vehicles to the RTD is an initiative to assist the authority to carry out its monitoring and enforcement duties on the highways,” Azman explained.
The PLUS-RTD collaboration, as well as with other enforcement agencies and road safety initiatives implemented by PLUS saw a significant drop in the number of accidents on the North-South Expressway. A total of 14,532 was reported in 2016 and the figure was reduced to 13,269 in 2018.
“We also set up 2 RTD Enforcement Stations at our Dengkil and Gunung Semanggol Rest and Service Areas (RSAs) to assist RTD in conducting regular advocacy and road safety programmes on the highway. A third RTD Enforcement Station in Pagoh RSA will be opened soon,” Azman added.
Azman also announced that PLUS is funding the installation of 11 additional AWAS cameras at accident prone areas along the NSE within the next few months.
“The presence of authorities on the highways was able to reduce traffic offence such as misuse of emergency lane, reckless driving and over speeding,” explained Azman.
UEM EDGENTA REPORTS 22% PROFIT GROWTH FOR FY2018 AND LAYS DOWN THE STRATEGY TO DRIVE DOUBLE-DIGIT GROWTH IN THE COMING YEARS
UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company held its 56th Annual General Meeting (“AGM”) here today.
After sharing the Company’s FY2018 results which produced another year of profitability and growth, Managing Director/Chief Executive Officer of UEM Edgenta, Dato’ Azmir Merican shared the Company’s plan to achieve double-digit growth in a challenging operating environment. He is committed to deliver sustainable growth and continuity in the delivery of a robust dividend pay-out ratio (of up to 80%). This comes on the back of the Company achieving another stellar year of profitability and growth.
For the financial year ended 31 December 2018, UEM Edgenta recorded a 3% increase in revenue to RM2.2 billion as compared to the previous year’s revenue of RM2.1 billion. Profit Before Tax (“PBT”) increased to RM198.5 million for FY2018 which was driven by improvements realised through group-wide efficiency and lower financing costs, resulting in a PBT margin increase to 9% in FY2018 as compared to 8% in FY2017. Correspondingly, net profit stood at RM152.4 million.
The PBT margin increase in FY2018 is also attributed to further tidying up of operations, specifically in the rolling-out of work processes which continuously improve operational excellence, customer value, plus the elimination of waste with the adoption of LEAN programmes across the company’s diversified business portfolio.
As at 31 December 2018, the Company’s work-in-hand was at RM13.4 billion; driven by its core segments which provided sustainable return.
The strong performance of the Healthcare Support division recorded growth of 8.9% in revenue and net profit of 7.1%, and is on an upward trend as it capitalises on opportunities beyond the concession scope of work by proactively introducing value-added solutions to the Ministry of Health (“MOH”) hospitals and clinics under its care in Perak, Kedah, Pulau Pinang and Perlis. The implementation of the UETrack™ system at selected hospitals is the first of its kind for government hospitals in Malaysia. The system operates on intelligent building management capabilities which enables effective automated solutions and intelligent insights to support real-time decision making, acting as a catalyst to drive predictive maintenance capabilities instead of the conventional reliance on scheduled and routine maintenance.
The operations of the Healthcare Support division in Singapore, Taiwan and Malaysia recorded new business in-roads in recent months, all of which are expected to positively impact the Company’s performance in 2019. These include in Singapore: Tan Tock Seng Hospital, Assisi Hospice and Jurong Medical Centre; Taiwan: National Taiwan University Hospital and Taipei Medical University Hospital; and Malaysia: the KPJ Healthcare Group and Cardiac Vascular Sentral Hospital Kuala Lumpur. Contract renewals have also been secured at several hospitals and facilities in Singapore and Malaysia, some of which have already taken effect since Q1 FY2019.
Performance of the Property & Facility Solutions division in FY2018 showed improvement in revenue and net profit at 19.1% and 50.4% respectively and is mainly attributed to the development of advisory work for Tun Razak Exchange as well as facilities and township management services for CIMB buildings, Medini Iskandar and Marina View Residences. The Company will continue to focus on maintaining the growth trajectory in this division through differentiation of service offerings by focusing on asset enhancement via technology applications and platforms which will also help improve efficiency and profitability.
KFM Holdings Sdn Bhd, which was acquired by UEM Edgenta in 2016, has been officially rebranded as Edgenta GreenTech Sdn Bhd to leverage on the value of the Edgenta Brand in the sustainable green building sector. The rebranding will provide the impetus for its growth strategy which has in recent months focused on implementing energy performance solutions. This comes on the back of the Malaysian Government’s RM2 billion allocation to the Green Technology Financing Scheme in its 2019 budget to incentivise investments in Green Technology.
Infrastructure Services division posted an increase in revenue by 2.3% in FY2018, mainly due to civil and pavement maintenance works for highways. Growth was moderate as projected key national infrastructure projects did not materialise.
Costs were also incurred for the development of the Pavement Research Centre, which supports the Company’s vision to develop new and more durable products to be used in road pavement. For FY2019, the Company will continue with the roll-out of operational initiatives, including “LEAN” programmes for process improvements, as well as further its investments in innovative technology.
Despite external headwinds, this division will continue to explore further growth opportunities. The division currently delivers maintenance works for over 2,500 kilometres of highways and state roads across Malaysia and Indonesia. In Indonesia, the division has recently entered into a joint-operations agreement with Astra Infra Services to provide maintenance services for the Cikampek-Palimanan Toll Road, while in Malaysia, it has secured a tender to upgrade sewage treatment plants and ancillary facilities along the North-South Expressway. The ongoing roll-out of Performance-Based Contracting (“PBC”) will set the motion for the division’s revamped service delivery model, driving efficiency and innovation.
The introduction of new mechanised vehicles – the MULAG Grass Cutter and DULEVO Road Sweepers are expected to contribute towards, and positively impact operations through reduced manpower costs and improvement of safety procedures for employees at the frontline and public road users. As part of its sustainable efforts, this division will be focusing on improving its operational abilities as well as the implementation of top-class safety standards with the introduction of new operating procedures when performing routine and maintenance works with its service partner network.
The Asset Consultancy segment will continue to focus on completing existing projects and is optimistic of the long-term prospects for the infrastructure sector as the government at State and Federal levels stay committed towards the implementation of key projects such as the Pan Borneo Highway, Klang Valley Double Track and Sarawak Coastal Road Network & Second Trunk Roads projects. The Company is thus exploring opportunities to provide project management services for new highways and roads.
The Company has rolled out various incentives to boost organisational excellence including the establishment of its very own UEM Edgenta Learning Centre which will act as the regional hub on all matters pertaining to improving and establishing high service delivery standards.
“We are optimistic that in 2019, we will be able to secure more business locally and in the region. The Healthcare Support Division will continue to be our strongest growth engine as we work towards increasing our market share in Singapore, while in Taiwan, we are targeting growth by upselling new services to our existing customers. On the home front, we are strategically looking into cross-selling and capitalising on the synergies amongst our business divisions”, said Dato’ Azmir Merican.
He added, “Our aim for FY2019 is to continue to remain profitable as we target double-digit growth. We will achieve this through continuing to focus on people and technology investments which are intended to spur value creation initiatives that will positively impact our bottom-line. Continuous improvement through LEAN programmes have already been implemented and is driving further organisational and operational excellence enabling us to offer our clients’ new automated and mechanised solutions for their businesses”.
Dividend for FY2018
In view of the Company’s positive FY2018 performance and in line with its commitment to enhance its dividend policy between 50% and 80%, UEM Edgenta had declared a full-year dividend pay-out of 14 sen, which is equivalent to a pay-out ratio of 78.5% based on PATANCI for FY2018 results. The total dividend pay-out in FY2018 represented a yield of 5.1% based on the share price as at 31 December 2018 of RM2.72.