UEM SUNRISE GARNERS HIGHEST EVER REVENUE SINCE ITS PUBLIC LISTING
• The Company performed above expectations in 2017, achieving its highest ever revenue, exceeding RM2.9 billion since its listing in 2008. • With the remarkable progress, the Company aims to push the boundaries further for the forthcoming years to offer unique lifestyle offerings to the market.
KUALA LUMPUR, 31 May 2018 – Following its tenth Annual General Meeting (“10th AGM”) today, UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) announced its achievements for 2017 and continues to be committed to enhance its business via its strategic approaches by focusing on meeting the current market demands; monetisation of assets and rebalancing of portfolio; increase presence in the central region; create vibrancy in Iskandar Puteri; and build and differentiate the brand through customer centric experience. Moving forward, the Company aims to push the boundaries further to bring even more unique and community driven lifestyle offerings to the market.
In the Central region, the Company launched its Kondominium Kiara Kasih in Segambut – its first RUMAWIP in the Federal Territory of Kuala Lumpur. In addition to affordable products, UEM Sunrise also focuses on mid-market developments, namely those priced from RM500,000 to RM1.0 million per unit in both the Southern and Central regions.
A conducive business environment is expected in 2018 as it will be a transformational year for UEM Sunrise. The Company is determined to push the boundaries to bring even more unique lifestyle offerings to the market as well as remain steadfast and more customer-centric.
UEM Sunrise Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said, “UEM Sunrise remains committed to discharge its responsibility entrusted unto us and we will strive to contribute our level best on the Company’s growth while supporting the government. The Company has grown close to 50 years now and with combined years of experience, it has built strong and sustainable communities and grown from strength to strength, which have helped to position us as one of the leading property developers in the country and we are ready to deliver another decade of excellence ahead”, he said.
UEM Sunrise Managing Director/Chief Executive Officer, Anwar Syahrin Abdul Ajib added, “Despite the challenging property environment in 2017, UEM Sunrise managed to pull together a remarkable set of results recording the Company’s highest revenue of RM2.9 billion since listing in 2008, almost doubling profit after tax and non-controlling interest (“PATANCI”) from RM147.3 million to RM280.1 million and exceeded its sales target of RM1.2 billion by 24% nearly hitting RM1.5 billion. As at to-date, sales stood at RM538.6 million which implies that we are on track to achieve our target of RM1.2 billion for 2018.
“We are pleased with the performance of our new project launches. In February this year, we launched Serimbun in Iskandar Puteri - a double storey landed residential development with total GDV of RM139.3 million with starting price of RM630,000 per unit and to-date, sales inclusive of bookings has already touched RM104.9 million. Kondominium Kiara Kasih is also doing reasonably well since its launch in March 2018 and sales inclusive of bookings to-date has reached close to RM82 million. Other ongoing developments are also progressing well and this includes Almas and Estuari Gardens, both in Puteri Harbour, Denai Nusantara, Sefina Residences and Residensi Solaris Parq in Mont’Kiara as well as Serene Heights Bangi in Selangor,” he said.
As part of the Company’s CSR initiatives, UEM Sunrise worked with Denia Development Sdn Bhd in Iskandar Puteri to build affordable homes, namely Taman Nusantara and Nusantara Prima since early 2000. The Company also developed and completed the double storey landed Bayu Nusantara and is currently completing the Denai Nusantara in Iskandar Puteri.
On the Central front, UEM Sunrise is excited about replicating the success of Solaris Dutamas and Mont’Kiara in Kepong with the acquisition of 72.7 acres of prime land parcels from Kuala Lumpur City Hall (“DBKL”). The land was acquired for RM416.4 million via a joint venture arrangement with a private developer Mega Legacy Equity Sdn Bhd. The Company intend to develop an integrated mixed residential and commercial development with an estimated GDV of RM15 billion over a period of 15 years. The Company is currently planning for the development and hopes to submit the plans soon so that it can launch the first phase, the residential component by 2019. In addition to the land in Kepong, UEM Sunrise has also acquired 19.2 acres of land in Equine Park in December last year. Plans are also underway with a target to launch it in 2019. The Company is looking to acquire more land parcels in the central region.
Interest on its completed properties, the likes of Symphony Hills in Cyberjaya, Nusa Bayu and East Ledang both in Iskandar Puteri, the Company has also intensified its sales campaign “A New Year, A New Home” which started in February 2018. Comprising various value proposition, such as Easy Entry, Easy Place, Easy Move and Easy Privileges, the sales campaign is not only for completed properties, but also for selected ongoing projects. These inventory monetisation efforts are expected to enhance cashflow position and at the same time, reduce the level of inventory in the Company’s balance sheet.
UEM Sunrise will also continue to expand the rent-to-own scheme through collaboration with commercial banks. Since its launch of the EASY Own Plan in 2017 - an attractive scheme to help customers fulfil their desire to own their own home - the Company offer customers an option to rent selected properties for a period of two years at market rate, with an option to own by exercising their rights to purchase the property within the rental period.
UEM SUNRISE ANNOUNCES PROPERTY SALES REVISION FOR THE FIRST QUARTER ENDED 2018
KUALA LUMPUR, 28 May 2018 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) would like to qualify its statement on the Company’s property development sales for the first quarter ended 31 March 2018 as announced on 22 May 2018. The total property development sales for the period was RM354.1 million instead of the announced figures of RM434.3 million. The correction is in relation to its Mayfair development in Melbourne, Australia. The revision was made upon discovery that certain units sold, which was in the previous quarter classified as confirmed reservations and subsequently recognised as sales, was again recorded as new sales when contracted in the current quarter.
The reduction in the figures does not have an impact to the Group for the financial year 2018 as the sales of Mayfair will only be recognised as revenue upon the project’s completion and settlement tentatively in 2022. The Company is however pleased to report that its property development sales to-date of RM538.6 million has exceeded the sales figures announced on 22 May 2018.
UEM EDGENTA RECORDS A STRONG START TO 2018, REGISTERS 34.0% GROWTH IN PROFIT AFTER TAX
KUALA LUMPUR, 23 May – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), a leading Total Asset Solutions company commenced its 2018 financial year (“FY18”) with a strong set of first quarter (“Q1 FY18”) financial results as compared to the same quarter in the preceding year, largely driven by growth in revenue and profitability across all its core sectors, namely Healthcare, Infrastructure and Real Estate.
Q1 FY18 revenue rose to RM460.8 million, which was 10.5% higher as compared to Q1 FY17. This was mainly attributable to higher revenue from new contracts in the commercial healthcare services sector and additional work secured for highway maintenance services. Healthcare and Infrastructure sectors continue to be the major contributors for the group’s revenue.
Profit before tax (“PBT”) grew to RM42.5 million in Q1 FY18, up by 30.6% against RM32.5 million in Q1 FY17, driven by higher revenue as well as better margin expansion. Correspondingly, profit after tax (“PAT”) increased to RM30.5 million, which is higher by 34.0% as compared to Q1 FY17.
As at 31 March 2018, gross gearing ratio stood at 0.39 times with borrowings of RM558.3 million. However, the Company is in a net cash position of RM86.0 million after taking into account short-term investments of RM194.0 million and cash, bank balances and deposits of RM450.3 million.
Managing Director/Chief Executive Officer, Dato’ Azmir Merican commented: “We are pleased with our financial achievement recorded in the first quarter of FY18. Our strategy of consolidating and strengthening our core sectors has started to yield results as evidenced by improvements in both revenue growth as well as profit margins. We remain optimistic of our prospects in all the sectors we operate in as well as our ability to maintain the growth momentum for the rest of 2018 based on our positive first quarter performance.”
“While we are focused on securing new businesses, all efforts are also underway to improve our operational and organisational excellence, with the use of technology and innovation enablers. This will help us to deliver better margins and profitability moving forward.”
UEM Edgenta’s strong track record will allow it to maintain its position as a leader in this field and capitalise on new business opportunities. Over the years, the Company has demonstrated its capability in assisting a wide range of public and private sector clients improve their assets’ operational efficiency and increase financial returns on investments in their assets, while at the same time providing an enhanced end-user experience.
This is evidenced by the fourth consecutive year of UEM Edgenta’s Healthcare Services division receiving the prestigious ‘Enhanced Clean Mark Accreditation Scheme (Gold) Award’ from the National Environment Agency of Singapore. The award was conferred in May 2018 and it recognises companies which deliver high standards of cleaning services through the training of workers, use of equipment to improve work processes and fair employment practices.
In the Infrastructure sector, with its 28 years of experience, UEM Edgenta has consistently been at the forefront of the highway maintenance industry. The Company undertakes network management and maintenance of over 2,500 km of expressways and state roads across Malaysia and Indonesia; in particular the North-South Expressway which is maintained in compliance to the high standards as prescribed by the Malaysian Highway Authority.
The Company recently unveiled an enhanced dividend policy of at least 50% and up to 80% payout ratio based on profit after tax and non-controlling interests, representing an increase as compared to the previous policy’s payout ratio of up to 70%. The favourable announcement sets the tone of future dividend payouts, which is further supported by the encouraging financial results in Q1 FY18.
UEM SUNRISE ANNOUNCES PROPERTY SALES OF RM434 MILLION, MORE THAN DOUBLED ITS SALES NUMBERS IN 1Q 2017
• Property Sales up by 156% compared to 1Q 2017 contributed mainly by Central region and International projects • Profit after tax and non-controlling Interest improved by 9% compared to 1Q 2017
KUALA LUMPUR, 22 May 2018 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the first quarter ended 31 March 2018 (“1Q 2018”).
The Company’s property development sales for the quarter was RM434.3 million, higher by 156% compared to the sales achieved in 1Q 2017 of RM169.4 million. 39% of the total property development sales is contributed by the Central region largely from Residensi Solaris Parq in Dutamas, Kondominium Kiara Kasih in Segambut and Symphony Hills in Cyberjaya. Kondominium Kiara Kasih is the Company’s first Rumah Wilayah Persekutuan (“RUMAWIP”) in collaboration with the Ministry of Federal Territories. Priced at RM300,000 per unit with built-up area of 850 square feet, the 719 units development was launched in March 2018.
37% of the property development sales is from the Company’s international projects Mayfair and Conservatory in Melbourne, Australia while the remaining 24% is from the Southern region mainly from Serimbun near Bukit Indah followed by Estuari Gardens in Puteri Harbour and Denai Nusantara, all of which are in Iskandar Puteri. Serimbun, launched in February 2018 is the Company’s latest mid-market double storey terrace houses in Iskandar Puteri. Priced from RM630,000 per unit, 215 units were launched with the built-up area of each unit ranging between 1,993 to 2,117 square feet.
As at to date the Company has launched projects with a total Gross Development Value (“GDV”) of RM356.8 million.
Major developments such as Teega in Puteri Harbour as well as Residensi22 and Arcoris both in Mont’Kiara were completed in 2017, while successful new launches namely Residensi Solaris Parq, Kondominium Kiara Kasih and Serimbun are at the initial stage of their respective developments. Other on-going developments namely Almas and Estuari Gardens both in Puteri Harbour, Denai Nusantara, Sefina Residences in Mont’Kiara as well as Serene Heights Bangi continue to be progressing well.
Revenue recognition for on-going developments for 1Q 2018 contracted to RM287.7 million compared to RM420.3 million in 1Q 2017, a decrease of approximately 32% considering that the development cycles for the new launches are still at the initial stage while Teega, Residensi22 and Arcoris are completed. Nonetheless, profit after tax and non-controlling interests for the period increased to RM25.3 million, an improvement of approximately 9% compared to RM23.3 million in 1Q 2017 driven by containment of operating cost, higher other income and net contribution from associates and joint ventures, albeit a lower operating profit in tandem with lower revenue.
Property development activities contributed a total of RM244.6 million representing 85% of the period’s total revenue with 54% contributed by the Southern region mainly from Almas and Estuari Gardens both in Puteri Harbour and Denai Nusantara, while the remaining 46% is from the Central region largely from Sefina Residences and Residensi 22 in Mont’Kiara followed by Serene Heights Bangi. The Company is no longer recognising revenue for its international projects based on progress completion and will instead recognise upon completion and settlement in compliance with the adoption of the Malaysian Financial Reporting Standards (“MFRS”) effective 1 January 2018 for property developers. 4% of the Company’s total revenue for the period is from the disposal of pocket land within Iskandar Puteri. Unbilled sales as at 31 March 2018 stood at RM4.8 billion.
Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “We are very pleased with our sales performance for this quarter. Having increased by a substantial 156% and achieving RM434.3 million compared to last year’s corresponding quarter, the performance is highly positive amid today’s soft property market environment. Interest on our completed properties the likes of Symphony Hills in Cyberjaya, Nusa Bayu and East Ledang both in Iskandar Puteri has also intensified following our sales campaign “A New Year, A New Home” which started in February 2018. Comprising various value proposition, such as Easy Entry, Easy Plan, Easy Move and Easy Privileges, the sales campaign is not only for completed properties, but also for selected ongoing projects. These inventory monetisation efforts are expected to enhance cashflow position and at the same time, reduce the level of inventory in our balance sheet”.
Touching on the sales contribution of newly launched products, “The launch of Serimbun and Kondominium Kiara Kasih with total GDV of RM139.3 million and RM217.5 million in February and March respectively, contribute close to RM70 million for the quarter. As at to-date however, total sales including bookings for both these projects is approximately RM184 million, with RM100 million expected from Serimbun. In terms of take-up including bookings, Serimbun is 73% while Kondominium Kiara Kasih is 39%. We are aware of the market’s needs for more mid-market and affordable residential products within strategic locations and have devised our deliverables to meet such expectations, which proved to be effective as seen in the sales performance of Serimbun and Kondominium Kiara Kasih. Having said that however, our focus is not only on affordable and mid-market products. Being a diverse property developer with portfolio that encompasses townships, high-rise residences, and mixed commercial developments including properties ranging from the affordable market segment to mid and high-end segments, we have the flexibility to change our product mix to suit demand. Among the key performers of our high-end segment is our ultra, luxurious Mayfair apartment designed by world renowned Dame Zaha Hadid in Melbourne and our premium two-tower Residensi Solaris Parq in Dutamas”.
Remarking on the recent acquisition of land in Kepong from Datuk Bandar Kuala Lumpur (“DBKL”), “After much negotiations, I am pleased to share that in April 2018, we acquired 72.7 acres of land in Kepong, Kuala Lumpur from DBKL at a purchase consideration of RM416.4 million via a joint venture arrangement with a private developer Mega Legacy Equity Sdn Bhd (“MLE”). Both the Company and MLE via a joint venture will develop the land with UEM Sunrise taking the lead. The land will see the construction of two interchanges connecting directly to MRR II with the first interchange to be completed within eighteen months from the first launch, a residential apartment targeted in 2019. We plan to develop an integrated mixed residential and commercial development with an estimated GDV of RM15 billion over a period of 15 years. At present, we are observing the fulfilment of the conditions precedent of the relevant agreements”.
Commenting on the impact of the adoption of the MFRS framework particularly MFRS 15 in relation to revenue from contracts with customers, “The bulk of the revenue in 2017 was from the Australian projects which at that time were recognised based on progress completion. In 1Q 2017, about RM117 million was recognised for Aurora Melbourne Central and Conservatory. With the adoption of MFRS 15, we no longer recognise international projects based on progress completion and instead recognise them upon completion and settlement. But due to the strong construction progress for both these projects; Aurora Melbourne Central 65% completed and Conservatory 66% completed as at end of March, we are confident of completing the first separable parcel comprising 32 levels of Aurora Melbourne Central in the third quarter of this year while the entire Conservatory towards the end of 2018. Revenue for land divestments will also now be recognised upon transfer of control to the purchasers. The proceeds from the disposal of lands to Country View Berhad and Kimlun Corporation Berhad, the agreements of which were signed last year, are expected to be recognised in the third quarter and second or third quarter of this year, respectively”.
The Company remains prudent in its sales target of RM1.2 billion and GDV target of RM1.2 billion for 2018 and will activate further launches depending on market condition.
UEM Edgenta to enhance its dividend policy to at least 50% and up to 80% dividend payout ratio
KUALA LUMPUR, 10 May – UEM Edgenta Berhad (“UEM Edgenta” or “Company”) had in its 55th Annual General Meeting held today, unveiled an enhanced dividend policy of at least 50% and up to 80% dividend payout ratio based on profit after tax and non-controlling interest (“PATANCI”), representing an increase as compared to the previous policy’s payout ratio of up to 70%. The enhanced policy comes on the back of UEM Edgenta’s businesses in its core sectors of Healthcare, Infrastructure and Real Estate. With its clear focus, net cash position and robust dividend policy, it aims to drive high performance to continuously deliver sustainable returns for its shareholders.
The financial year ended 2017 (“FY17”) was a year of streamlining for UEM Edgenta, following the disposal of Opus International Consultants Limited (“OIC”) which was completed in December 2017. The disposal, which was conducted at an attractive price, streamlined business strategy and bolstered UEM Edgenta’s financial position by unlocking the value of its investment, with total cash proceeds of RM463 million and a one-off gain on disposal of RM274.9 million.
Commenting on the Company’s achievements in FY17 on the sidelines of UEM Edgenta’s 55th Annual General Meeting, Managing Director/Chief Executive Officer Dato’ Azmir Merican commented, “We are pleased to have achieved a PATANCI of RM418.2 million, including the one-off gain on disposal of OIC. We were able to declare bumper dividends of 31 sen per share which is our highest payout to-date. For clarity, sale of OIC did not include Opus International (M) Berhad (“OIM”) which is involved in asset development and project management and has a strategic role and competitive position in the infrastructure space as part of UEM Edgenta. OIM is one of the main consultants supporting the Project Delivery Partner (“PDP”) for the Pan Borneo Highway Sabah and is also the Independent Checking Engineer for Pan Borneo Highway Sarawak.”
During the financial year, significant work was also conducted on integration of the companies which were acquired in FY16, UEMS Pte Ltd (“UEMS”) and KFM Holdings Sdn Bhd (“KFM”). UEMS, a new growth engine for UEM Edgenta’s Healthcare Services Division which provides international growth platforms in Singapore and Taiwan, contributed to the doubling of the Division’s revenue from RM435 million in FY16 to RM913 million in FY17. UEMS’ revenue grew 15% year-on-year (from SGD124.7 million to SGD142.9 million in FY17) on the back of new commercial contracts secured. As for KFM, it reported a strong revenue contribution of 63% to the Real Estate Services Division in its first full year of integration. KFM increases the Company’s value proposition in the Real Estate sector, with its focus on high performance green building capabilities.
Operating in sectors which enjoys high public and private spending, UEM Edgenta simultaneously provides the assurance of a defensive and reliable business married with exciting growth prospects. The Company benefits from being in the stable Healthcare Services business where the concession from the Ministry of Health provides long term stability of income while UEMS provides the impetus for commercial growth. Similarly, UEM Edgenta’s business in the Infrastructure sector also provides a stable base for revenue generation, on the back of a promising industry outlook.
UEM Edgenta is also committed to further improve its operational and cost efficiencies by adopting technology to yield improved margins, and has successfully applied technology-enabled solutions in hospitals, as well as building management which have shown 20-30% cost improvements.
Dato’ Azmir added, “Backed by resilient and stable earnings as well as growth in all our business divisions supported by our project pipeline, with positive outlook in the related sectors, we expect to continue to deliver correlating dividend payouts and sustainable returns to shareholders. With our defensive business strategy and growth prospects, we want to offer predictability in terms of shareholders’ returns.”