UEM SUNRISE REPORTS ITS FINANCIAL PERFORMANCE FOR THE SIX MONTHS ENDED 30 JUNE 2016
KUALA LUMPUR, 30 August 2016 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the six months ended 30 June 2016 where total revenue recorded for the period stood at RM795.6 million as compared to RM789.8 million reported for the corresponding period in 2015, an increase of approximately 1%. UEM Sunrise’s profit after tax and non-controlling interest for the six month period stood at RM57.6 million compared to RM137.0 million in the same period last year, a decline of 58% mainly due to lower gross profit margin as well as one-off items recorded in the corresponding financial period last year.
Property development activities contributed 81% of total revenue for the current period with the three major revenue contributors being Teega in Puteri Harbour, Iskandar Puteri; Aurora Melbourne Central in Melbourne, Australia and Arcoris Mont’Kiara, Kuala Lumpur in line with construction progress recorded for each of the projects. The disposal of industrial land parcels within the Southern Industrial & Logistics Clusters (“SiLC”) in Iskandar Puteri to AMOREPACIFIC Corporation, a South Korea-based cosmetics company contributed close to 12% of total revenue for the current financial period.
Total property development sales for the period declined to RM427.1 million from RM600.4 million in the same period last year mainly due to a lower contribution from international sales in the current period. On the local front, both the Central and Southern Regions contributed around 24% each of total sales which was driven by Sefina Residences in Mont’Kiara and Melia Residences in the Southern Region, the Company’s newly launched landed mid-market township development in Gerbang Nusajaya. International sales accounted for 52% of total sales for the current period. Unrecognised revenue as at 30 June 2016 stood at RM4.3 billion as compared to RM3.8 billion recorded in the same period in 2015.
As at year to-date, UEM Sunrise has launched projects with a total Gross Development Value (“GDV”) of approximately RM522.6 million. In the Southern Region, Denai Nusantara was launched early 2016 followed by Melia Residences Phase 1, 2 and 3 in April and May while in the Central Region, Camellia in Serene Heights, Bangi was launched end July.
Commenting on the Company’s sales performance, Dato’ Izzaddin Idris, Executive Director of UEM Sunrise said, “Our sales for the six months of 2016 has been encouraging. Despite the softer property market in Johor, Melia Residences received positive response given its strategic location and attractive price point. We originally intended to launch Phase 1 only which has 107 units with GDV of RM66.0 million for 2016 but due to the strong interest, we decided to launch two additional phases, ultimately a total GDV of RM262.8 million with a total of 366 units for 2016. As at mid-August, overall sales inclusive of bookings for Melia Residences is 60%”.
“We are encouraged by the strong interest in Camellia where the double-storey terrace homes are selling at a starting price of RM590,000 per unit with a minimum built up of 2,174 square feet. In the month or so since its launch, sales inclusive of bookings for the 109 units of Camellia’s first phase reached 59% and we are now bringing forward the launch of the second phase. Both Melia Residences and Serene Heights Bangi are expected to contribute positively to our sales for the year.”
On the international front, Dato’ Izzaddin said the Company has decided to postpone the launch of its third project in Melbourne located on St Kilda Road to 2017 in order to revamp the entire development plans to generate a higher GDV compared to the earlier development plans of only refurbishing the existing building. In line with this postponement, UEM Sunrise’s sales target for 2016 has been revised downwards from RM1.5 billion to RM1.0 billion.
On the land disposal to AMOREPACIFIC Corporation, one of the world’s largest cosmetic, personal and healthcare companies, Dato’ Izzaddin said, “We welcome AMOREPACIFIC’s presence in Iskandar Puteri. Their plan to invest approximately USD170 million to develop an integrated centre for research and development, manufacturing and logistics of cosmetics products which is anticipated to create about 500 new jobs in Iskandar Puteri. This bodes well with our strategy to continue promoting catalytic projects in Iskandar Puteri which will result in job creation”.
In terms of its land bank expansion, UEM Sunrise had on 27 May 2016 signed a Joint Land Development Agreement with Telekom Malaysia Berhad for the development of two land parcels measuring 1.69 acres in Kuala Lumpur. In addition, UEM Sunrise also recently completed the acquisition of the remaining 38% stake in Ibarat Duta Sdn Bhd from Melavest Sdn Bhd giving UEM Sunrise 100% ownership in Solaris 3, a much anticipated mixed development project targeted for launch in 2017. Solaris 3 is the parcel of land located between Publika and Masjid Wilayah Persekutuan.
UEM EDGENTA REPORTS FINANCIAL PERFORMANCE FOR H1 and Q2 2016
Local Revenue & Profit Remains Strong
KUALA LUMPUR, 29 August – UEM Edgenta Berhad (“UEM Edgenta” of the Company) today announced its financial results for the six months ended 30 June 2016 (H1) which saw it recording a Profit Before Tax (PBT) and before impairment losses totaling RM78.5 million.
UEM Edgenta’s revenue for H1 stood at RM1.349 billion which is lower by RM144.5 million compared to RM1.493 billion recorded during the preceding year. However, the Company’s second quarter (Q2) for 2016 saw its revenue increased by 7 percent to RM697.5 million compared to RM651.8 million recorded in the first quarter 2016.
The higher revenue for Q2 is due to higher contribution from Integrated Facilities Management (IFM) and Infra Services (IS) Division totaling RM37.4 million. The IFM Division posted revenue of RM32.7 million where it recognises revenue from its new subsidiary, KFM Holdings Sdn Bhd and private clients from the healthcare services while the IS Division recorded a rise in revenue by RM5.2 million following increase civil and pavement works carried out on the North-South Expressway.
With regards to the impairment totaling RM68.3 million, Azmir Merican, UEM Edgenta’s Managing Director/Chief Executive Officer said that it’s a prudent decision given that Opus Stewart Weir is faced with continued weakening oil prices while Opus’ Australian operations is still confronted with sluggish economic environment of the country.
“We are optimistic of the future and will continue to pursue opportunities in infrastructure projects for both our IS and AC divisions. In fact, we are well positioned to capture some of the RM150 billion worth of key infrastructure projects initiated by the Government for the next five years.
“Our order book is currently still very strong at RM5.5 billion and this includes the recently secured RM87 million contract for the Relocation of Telecommunication Works for MRT2 as well as RM87.3 million routine maintenance services and network maintenance management for LPT2. We believe there are many other similar projects in the market which we could capture. We are continuously pursuing growth and we are expecting a positive result for 2016.”
The Company also announced that its Deputy Chairman, Amir Hamzah Azizan has been appointed as UEM Edgenta’s Chairman, effective 29 August 2016.
UEM GROUP CHARITY RUN AT ISKANDAR PUTERI RAISED CANCELLED
Cancellation Due to Haze; RM440,000 Collected Will Be Donated to Charities
ISKANDAR PUTERI, 26 AUGUST –The Charity Run at Iskandar Puteri organised byUEM Group Berhad (UEM Group) which is scheduled to take place tomorrow (27 August)has been cancelled due to the haze that has engulfed the area.
The decision was made with the 3,000 registered runners and participants’ health in mind of not wanting to expose them to the haze that could pose health risks.
The event site at the Mall of Medini however is open to participants from 5:00 a.m. to 5:00 p.m. so as to enable them to pick up their race bag and medal.
The Charity Run is organised in conjunction with UEM Group’s 50th Anniversary and Iskandar Puteri is the third and last leg organised by the Company. The initial two runs were held in New Klang Valley Expressway, Kuala Lumpur on 13 March and in Kangar, Perlis together with Perlis Marathon 2016 on 23 May.
RM440,000.00 of participation fees were successfully collected from the three events / venues, all of which will be donated to the five identified charitable organisations.
The five charitable organisations are Yayasan Kanser Tunku Laksmana Johor, Yayasan Tuanku Syed Putra, IJN Foundation, The Malaysia Association for the Blind and The National Autism Society of Malaysia.
GIANT JALUR GEMILANG ONCE AGAIN ADORNS MERCU UEM
KUALA LUMPUR, 21 August –UEM Group Berhad (UEM Group), Malaysia’s engineering-based infrastructure and services group, has once again raised a giant Jalur Gemilang at its headquarters, Mercu UEM to commemorate the country’s 59th National Day and Malaysia Day 2016.
Measuring a mammoth 180 feet (w) x 93 feet (h), the giant Jalur Gemilang, which can be seen as far as Jalan Rakyat, Bangsar and Brickfields, demonstrates the Company’s enthusiasm, spirit of patriotism and pride, and love for the nation.
The raising of the flag which is an annual affair, took some 8 hours to be raised by more than 10 personnel due to its sheer size. The impressive sized flag covers six floors of Mercu UEM and will be on display until 18 September 2016.
OVER 1,000 FRESH UNEMPLOYED GRADUATES EXPECTED AT UEM GROUP’S SL1M-YES OPEN DAY 2016
Company to Offer 400 On-the-Spot Employment KUALA LUMPUR, 18 August – UEM Group Berhad (UEM Group), Malaysia’s engineering-based infrastructure and services group, is expecting the attendance of over 1,000 unemployed fresh graduates from local and foreign universities at its Skim Latihan 1Malaysia-Young Executive Scheme (SL1M-YES) Open Day 2016 on 18 and 19 August.
Held at the Company’s headquarters, Mercu UEM located in KL Sentral, the two-day event which involves a walk-in interview and on-the-spot job offer will commenced from 9:00 a.m. to 6:00 p.m.
“This is the second year we’re organising the Open Day following an overwhelming response received in 2015 which saw the attendance of 1,200 fresh graduates. We offered 250 jobs during the last Open Day but for 2016 we are increasing the number to 400,” said Dato’ Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group.
Successful candidates will be placed at either UEM Group or its subsidiary companies namely PLUS Malaysia Berhad, UEM Sunrise Berhad; Cement Industries of Malaysia Berhad; and UEM Edgenta Berhad.
“Since the launch of UEM Group’s SL1M-YES in 2006, we have trained a total of 1,550 graduates many of whom were offered permanent employment opportunities across UEM Group of Companies based on available positions. For the rest, we’re pleased to report that upon completing their one-year training they were able to secure employment in reputable companies,” added Dato’ Izzaddin.
SL1M-YES, a programme under the Prime Minister's Department's Economic Planning Unit through collaboration with Government-Linked Companies and private sectors, is aimed at improving the employability and marketability of fresh graduates by equipping them with various training and allowing them to attain soft skills as well as technical skills through on-the-job exposure.
UEM Group’s SL1M-YES trainees will be on a 12-month contract including a one month compulsory soft skills training conducted by an external training consultant. These include language (English), communication skills, problem solving skills, organisational adaptability, and time management and workplace etiquette.
SL1M-YES trainees are also provided with a monthly allowance of RM1,800.00, contribution to EPF and SOCSO, and they will also receive medical benefits as well as personal insurance.
“We support the Government’s efforts to lower the unemployment rate of graduates and the SL1M-YES programme is our commitment to enhance the capacity and capabilities of Malaysia’s workforce. It is an initiative which we believe would ultimately create a sustainable talent pipeline.”
Dato’ Izzaddin added that Human Capital Development is high on UEM Group’s agenda, be it for the nation in general or for its personnel specifically. On the latter, the Company has invested approximately RM40.3 million between 2013 to 2015 where it provided comprehensive learning and development programmes for its staff across all levels.
To further showcase its commitment to the Malaysia’s Human Capital Development, the Company is also in partnership with various universities such as University of Malaya and Universiti Teknologi MARA where in addition to internship placement for the universities’ respective students, UEM Group also offers lecturer industrial attachment and collaboration in research projects.