UEM SUNRISE FOSTERS THE SPRIT OF INCLUSIVENESS THIS NATIONAL MONTH
KUALA LUMPUR, 30 August 2022 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”), one of Malaysia’s leading property developers, kickstarted the National Day and Malaysia Day celebrations with a campaign themed “Inspiring Malaysia” as a tribute to the extraordinary Malaysians who continue to inspire every day.
UEM Sunrise seeks to inspire the country through “Inspiring Malaysia” which tells the story of the people being a source of inspiration to become inclusive communities.
Our campaign theme also aligns with the essence of Merdeka, which is all about transformation – the momentous turning point for the country and all Malaysians in our unabating journey of nation-building.
Similarly, UEM Sunrise has also embarked on the path of transformation, bringing our three-pronged strategy of ‘Triage-Sustain-Stabilise’ into fruition. In our current Triage stage, we focus on expediting launches while prioritising and suturing issues that need immediate attention.
“As a leading property developer built and grown by Malaysians, we are surrounded by amazing people with various cultural backgrounds who inspire us to do better for our customers and communities every day - to create and transform spaces and places that instil inclusivity. Holding on to the idea that design should never discriminate, we are dedicated to creating spaces that nurture interaction, collaboration and understanding amongst one another,” said UEM Sunrise Chief Executive Officer Sufian Abdullah.
UEM Sunrise plays a crucial role in shaping and growing with the communities, especially close to its developments. For August, the Company launched its national campaign by joining hands with students from its adopted schools within its developments, including SK Medini in Johor and SK Kiaramas in Kuala Lumpur, alongside UEM Sunrise’s CHIEF Happiness Officers through a musical rendition of the timeless “Saya Anak Malaysia” tune.
In addition to strengthening the Company’s engagement with its adopted schools through the musical mashup, the collaboration also seeks to promote a sense of patriotism this National Day and Malaysia Day, imparting the notion of the Malaysian identity and inspiring a sense of inclusivity within the people.
“Part of our efforts to do something special for our communities is getting together with our adopted schools and celebrating the sense of inclusiveness with them. Instilling the value of patriotism encompasses everything, including showing respect for one another, fostering a positive attitude and appreciating a unique culture. As students here will become active citizens and future leaders of tomorrow, we want them to embrace the spirit of unity and togetherness during this month.
Through our CHIEF values, "Caring, Honest, Involved, Enthusiastic, Fun-loving and our tagline, “Find your Happy”, where we seek to inspire joy and happiness in everyone, our message of inclusiveness is an important element of our Malaysian fabric and narrative, and I have high hopes of conveying this to the students and the masses,” he added.
UEM Sunrise’s creative retail space, Publika Shopping Gallery, is hosting a live art initiative to promote the national identity and foster an inclusive community. The initiative features a local artist, Aimman Hafizal, with the participation of the Company’s CHIEF Happiness Officers. Additionally, the retail gallery is gathering local entrepreneurs selling locally made crafts, food, apparel, and many more in its “Merdeka! Bazaar”, a Malaysian-themed bazaar from 24 August to 4 September 2022. Shoppers can also redeem a special gift by spending RM300 and above in Publika Shopping Gallery while stocks last.
In celebrating 65 years of nationhood, UEM Sunrise has also prepared several special deals during this celebratory month, including fantastic rebates, rewards, and ready-to-move-in benefits. Featured developments include Allevia Mont’Kiara, KAIA Heights Equine, and Residensi AVA in the Central region; Estuari Gardens, Teega Residences, and Impiana in the Southern region; and Begonia, Broadhill and Arden Hill in Forest Heights, Seremban.
UEM Sunrise's "Inspiring Malaysia" campaign seeks to amplify a sense of appreciation and inclusiveness this National Day and Malaysia Day.
The students of SK Medini raising their flags up high in honour of the country’s 65th National Day.
The happy smiles of the children of tomorrow joining the “Inspiring Malaysia” campaign.
SK Medini boys donning the traditional Malay attire during the launch of UEM Sunrise's "Inspiring Malaysia" campaign.
UEM EDGENTA PARTNERS WITH HSBC AMANAH ON A SYARIAH COMPLIANT SUPPLIER FINANCING PROGRAMME TO SUPPORT SME AND MSME VENDORS
KUALA LUMPUR, 30 August – UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the region’s leading Asset Management and Infrastructure Solutions company has collaborated with HSBC Amanah Malaysia Berhad (“HSBC Amanah”) to develop a Syariah Compliant Supplier Financing Programme (“SFP”) that benefits UEM Edgenta’s suppliers and vendors. This is a landmark transaction as HSBC Amanah is launching the bank’s first Islamic supply chain facility in Asia.
The Edgenta Supplier Financing Programme aims to complement the Malaysian Government’s Bumiputera Vendor Development Programme to nurture SME suppliers to grow to larger companies and obtain hassle-free access to affordable financing without collateral. The SMEs and MSMEs can leverage on UEM Edgenta’s strong balance sheet and the Company's long-term relationship with HSBC Amanah to obtain their working capital financing and enjoy early financing settlements.The Edgenta Supplier Financing Programme launch event took place on the 30th of August at UEM Edgenta’s Learning Centre and was graced by YB Tan Sri Noh Haji Omar, Minister of Entrepreneur Development and Cooperative.
“Our suppliers and vendors are a fundamental source of our day-to-day operations, this Supplier Financing Programme is a seamless method to accelerate vendors payment and ensure that they have the cash flow that they may need to carry out their contract obligation and deliver the goods and services on time,” said Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta in his keynote address during the launch event.
“As we continue to support the Government’s nation building initiatives and to better the lives of communities we operate in, we are grateful to be able to provide relief and support to assist SME an MSME vendors in maintaining a healthy cash flow and to ensure that they continue to contribute to the national economy, post pandemic. This financing method will help to provide the necessary cash flow and working capital for our partner vendors,” added Syahrunizam.
“The significant partnership between HSBC and UEM Edgenta will be crucial to empowering UEM Edgenta’s supply chain partners and providing them with the requisite cash flow needed to facilitate their growth. HSBC’s involvement on this initiative also reinforces our commitment in supporting the Malaysian government in their efforts to ensure that SMEs have access to financing for their operations”, said YB Dato’ Omar Siddiq, CEO, HSBC Malaysia.
Since this programme’s introduction back in May 2022, over 380 SME and MSME vendors have been offered to onboard this programme. Phase 2 will be implemented in October and we plan to reach out to a further 422 SME and MSME vendors. The new Syariah Compliant Supplier Financing Programme which UEM Edgenta has partnered with HSBC Amanah on, is a further development of UEM Edgenta’s supply chain financing initiative.
UEM EDGENTA POSTS FIRST HALF REVENUE OF RM1.2 BILLION
KUALA LUMPUR, 26 August – UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the region’s leading Asset Management and Infrastructure Solutions company, announced its unaudited financial results for the period ended 30 June 2022 (“1H FY2022”) today.
The Company reported a net profit of RM20.2 million in 1H FY2022 on the back of RM1.2 billion revenue, as compared to RM14.4 million and revenue of RM1.0 billion respectively for the same period in FY2021, with an increase in year-on-year (“Y-o-Y”) revenue of 14.2%. The normalised net profit grew by 65.5% YoY, from RM16.7 million in 1H FY2021 to RM27.6 in 1H FY2022.
Comparing the second quarter of FY2022 (“Q2 FY2022”) with the immediate preceding quarter (“Q1 FY2022”), revenue grew to RM627.7 million, an increase of 16.4% from RM539.2 million in Q1 FY2022. Net profit for the quarter increased by 15.8% from RM9.4 million to RM10.8 million.
Growth in revenue for both year-on-year and quarter-on-quarter (“Q-o-Q”) was primarily driven by recovery of the economy post-pandemic, resulting to higher maintenance work performed for expressways and new contracts secured in the Healthcare division. The incremental financial performance is a testament of the Company’s pragmatic business fundamentals through its diversified portfolio and technology-enabled sustainable solutions across the Group. As of 30 June 2022, UEM Edgenta’s balance sheet remains healthy with low gearing ratio at 0.3 times.
The Company’s orderbook stands at RM10.5 billion and we continued to win new contracts in first half of FY2022. International markets and technology-enabled contracts continue to lead the new contract wins, both contributed ~70% of these new contracts, affirming the Company’s international market expansion and becoming a technology-enabled solutions company strategies.
While the Group’s long-term growth trajectory remains intact, amidst a more robust economic recovery, the management is cautiously optimistic, on the outlook for this year considering the uncertainties brought about by global economic slowdown, supply chain disruption, inflationary pressures and increase in minimum wage in Malaysia.
“The Company shall remain vigilant and prudent in managing operating costs, while we continue to expand our footprint in high growth markets, namely the Middle East, where we are expecting to secure and leverage on new partnerships in the near future, bringing our portfolio of Sustainability Programs, Digital and Tech Solutions to the market,” said Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta.
“Underpinned by the Edgenta of the Future 2025 (“EoTF 2025”) vision of becoming a technologyenabled solutions company with a focus on healthcare by 2025, the on-going assimilation and the commitment of Environment, Social and Governance (“ESG”) principles across the Group’s business solutions, operations and resources deployment, shall place us in a better position for growth opportunities in this challenging economic and market condition, while we continuously strive to support the government in our nation building agenda”, added Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta.
UEM Edgenta has continued to provide uncompromised healthcare support services to all public and private hospitals under its care in the region. The Company strive to drive resilient growth through Tech-enabled solutions and Sustainability programs across its operations while continue with digital transformation through Edgenta NXT and to provide the wider market with end-to-end cloud infrastructure services across Malaysia, Singapore, Indonesia, Taiwan, India, United Arab Emirates and The Kingdom of Saudi Arabia.
(UEM SUNRISE) ROBUST REVENUE GROWTH GAVE RISE TO A PROFITABLE PERFORMANCE IN THE FIRST HALF OF 2022
KUALA LUMPUR, 24 August 2022 – UEM Sunrise Berhad ("UEM Sunrise" or the "Company") today announced its financial results for the six months ended 30 June 2022. The Company continued to be profitable as it recorded a revenue of RM781.5 million compared to RM501.8 million in the first half of 2021 driven by higher progress billings and construction progress from local developments, mainly Residensi Solaris Parq in Dutamas, Serene Heights in Semenyih, Aspira ParkHomes in Gerbang Nusajaya, Senadi Hills in central Iskandar Puteri, Residensi Astrea in Mont'Kiara and higher sales of Estuari Gardens in Puteri Harbour. Revenue was also supported by the sale of 19 industrial plots in the Southern Industrial and Logistics Clusters and the divestments of few non-strategic lands; mainly the 431 acres of land in Mersing, Johor recognised in the reporting quarter. The transaction was executed in July last year.
In tandem with the higher revenue, and improvements in other income and favourable share of results from associates and joint ventures, largely from Nusajaya Tech Park and Horizon Hills in Iskandar Puteri, UEM Sunrise recorded a significant improvement in its earnings position. It disclosed a profit after tax and non-controlling interests of RM39.7 million for the first half of 2022. This is a positive recovery in contrast to its performance in the same period last year, which was a loss of RM11.7 million.
UEM Sunrise introduced its three-pronged turnaround strategic plan in the fourth quarter of 2021 and has since embarked on several initiatives under its first stage; Triage, where amongst its plans was to stabilise the Company, restore investors’ confidence and return to profitability. These initiatives are expected to be deployed towards the end of 2023, to prepare UEM Sunrise to enter into the Stabilise stage.
The launches of its product pipeline are on track. The Company has made plans to launch the second phase of KAIA Heights in Equine Park, new phases in Serene Heights and a proposal to introduce MK 31 in Mont’Kiara in the second half of this year. All these projects are in the Central region. In Southern, the Company plans to launch Aspira Gardens in Gerbang Nusajaya and Senadi Hills, whilst discussions are ongoing to unveil a new development in Collingwood, Melbourne.
Property sales in the first half of 2022 was RM439 million. 57% was contributed by projects in the Central region led by KAIA Heights, followed by Residensi Allevia in Mont'Kiara and Serene Heights, and 39% was from Southern mainly Estuari Gardens, Aspira LakeHomes in Gerbang Nusajaya and Teega in Puteri Harbour. The remaining 4% was from Conservatory in Melbourne; unsettled units which were re-sold to replacement buyers. To-date, only one unit remains for sale. The Company’s unbilled sales as at 30 June 2022 is RM2.3 billion.
Commenting on the financial results, Sufian Abdullah, Chief Executive Officer of UEM Sunrise said, "Our financial performance has been improving as evidenced from our profit in this financial period. This momentum is expected to continue throughout the remaining year. We are pleased that the initiatives carried out under the Triage segment of our strategy have been showing positive outcomes. Our emphasis was on improving cost structures, and resorting to bulk purchase of materials, bundling of service contracts and entering into vendor partnership programmes as means to achieve cost efficiencies. We are also leveraging on these initiatives to mitigate the increase in prices of materials”.
“Our priority in the meantime is to strengthen our product pipeline and focus on property development activities. Plans to launch the targeted projects remain intact. We expect to launch them in the second half of 2022. Our planned development in Taman Connaught, Cheras will be deferred to next year with plans for launch in early 2023”.
He continued, “To further reinforce our future pipeline, we acquired a 6.4-acre freehold land in Jalan Sultan Yahya Petra in early August. The land has a planning approval for a mixed commercial development comprising shopping complexes, offices, serviced apartments and hotels. We consider the acquisition as value for money as the land comes with an approved development order and is not subject to any affordable home requirement. The land is also very strategic in terms of location as it is situated at the intersection of Jalan Sultan Yahya Petra and Jalan Padang Tembak, and easily accessible to the Duta-Ulu Kelang Expressway or DUKE. We target to launch this new development in early 2024”.
On the Company’s strategy on the divestment of non-strategic lands and non-core businesses, “We have recognised some proceeds from the divestment of our nonstrategic land in Mersing in this second quarter. We also divested about 107.8 acres of lands in Gerbang Nusajaya as part of an in-kind settlement of the 6.4-acre land acquired in Jalan Sultan Yahya Petra. Our latest divestment activity is the sale of our entire equity interest in our company in South Africa which held a 31-acre land in Durban together with the Durban municipal council for Rand 143 million, or RM38 million. This divestment is important for the group as it marks our historic exit from South Africa. With this, we are able to focus and plan the reallocation of our resources in areas and businesses where we have competence, presence and visibility”.
In terms of sales, “We have embarked on initiatives that focus on customer-centricity, with the Product Branding Series set to be unveiled soon – UEM Sunrise’s product segmentation to design and create spaces for customers in each of their life stage. The Triage stage is linked to the Product Branding Series in an effort to get back on track towards sustainable growth and develop products that offer value to our customers, which are relevant and applicable to various stages of their life cycle. We reward our buyers with unique value propositions, embedding sustainability features within each development and offering reasonable pricing. This strategy is a vital component of our long-term plan to transform UEM Sunrise into a competitive and balanced real estate player. Our latest sales and marketing programme is the ‘Inspiring Malaysia’ campaign where we offer selected properties with rebates, rewards and ready to move-in benefits. The offer is from 8 August to 18 September. We also partnered up with Affin Bank in the ‘Home Step Fast/i’ campaign specially tailored for fresh graduates, young homebuyers and investors, allowing them to pay low monthly repayments for the first five years upon project completion without a lock-in period and no early settlement fee. Meanwhile, our collaboration with Maybank continues with the successful HouzKEY campaign”.
The Company will continue with its three-prong strategy; Triage, Stabilise and Sustain, focusing on the planned initiatives under Triage. It supports the nation's transition into endemicity and will continue to execute deals and implement programmes for the benefit of its stakeholders. However, given the escalation of geopolitical conflicts and worsening supply chain disruptions, the likelihood of the sector being affected by these headwinds is inevitable, giving rise to a challenging outlook ahead. In the interim, it maintains its sales and GDV targets of RM1.5 billion and RM3.3 billion, respectively for 2022.
PLUS DAN VOLVO TRUCKS MALAYSIA BEKERJASAMA DALAM MEMACU KESELAMATAN DAN MEWUJUDKAN PENYELESAIAN LESTARI UNTUK KENDERAAN BERAT
PLUS Malaysia Berhad (PLUS) and Volvo Trucks Malaysia (Volvo) are collaborating in driving safety and co-creating sustainable solutions for the heavy vehicles industry in Malaysia. The Managing Directors of both PLUS and Volvo Trucks Malaysia formalized the alliance through a signing ceremony at Persada PLUS recently.
This unique and inaugural collaboration includes exchanging industry-leading expertise and technology insights as well as resources towards achieving a safer system for heavy vehicle users.
The collaboration will also set a path for PLUS to plan and facilitate the future development of electric vehicle charging stations for commercial vehicles on PLUS managed highways. According to PLUS Managing Director, Datuk Azman Ismail, “PLUS is currently facilitating the development of charging infrastructures needed to support passenger electric vehicles on our highways. This will also enable us to include our preparation for electric trucks and commercial vehicles in the future.”
Volvo Trucks Malaysia will soon be introducing their first Electromobility range in Malaysia in line with their global effort in supporting the lower emissions agenda.
PLUS is committed to continue to champion safety along the highway through the 3E approach that includes aspects of Engineering, Enforcement, and Education to further improve the level of safety on our highways. PLUS and Volvo will also work together in developing a heavy vehicle safety programme, with the aim of equipping drivers with better safety knowledge and handling of heavy vehicles. This safety programme will be extended to PLUSTrack members to further enhance their safety on PLUS highways.
“PLUSTrack is a programme developed by PLUS for commercial and heavy vehicle customers on our highways. The programme aims to help uplift the experience of our commercial vehicle customers whilst adding value via loyalty rewards, privileges and educational sharing by our partners,” added Datuk Azman.
According to Volvo Trucks Malaysia Managing Director Anthony O’ Connell, “The transport industry is evolving at unprecedented pace. Technological innovations have moved us towards greater efficiency and higher safety standards and Volvo Trucks stands at the forefront of driving these possibilities. The potential offered by automation, electromobility and connectivity, through the digitization of the transport system, is immense.”
“Simply by being the leader that has access to data to fleets in real world scenarios and deployments, we will emerge as the foremost leader to drive adoption and scaled benefits of both fleet and business impact as a whole,” he added.
“Sustainability has become a hugely powerful force that is a constant debate in the mobility space. We have made our position clear to all, that Volvo Trucks is determined to drive our industry towards a sustainable future,” he said.
“We continue to be a leading global transport solution provider, and we will work together with PLUS as the biggest highway operator in Malaysia to drive the change. The heights of where both leaders can scale as the core of the ecosystem for the future of mobility for Malaysia are significant and we are excited of what we will drive towards tomorrow,” Anthony O’ Connell further explained.
With the first milestone of introducing the Iron Women Programme, a Volvo Group Global Initiative, this strategic partnership will enable Volvo to uplift the socio-economic status of professional truck drivers in Malaysia and push for gender inclusivity, ultimately addressing the shortage of skilled and certified drivers in the industry. PLUS will also share the programme with its PLUSTrack members as part of Volvo’s outreach to heavy vehicle customers.
“It is always exciting to be at the forefront of change. We truly hope that this partnership with VOLVO Trucks Malaysia will be a positive move forward towards improving the safety of highway customers and to spur the drive of electromobility in the commercial vehicle industry,” Datuk Azman concluded.
UEM SUNRISE ACQUIRES PRIME FREEHOLD LAND IN JALAN SULTAN YAHYA PETRA, 2KM AWAY FROM KLCC
KUALA LUMPUR, 5 August 2022 – UEM Sunrise Berhad ("UEM Sunrise" or the "Company"), one of Malaysia's leading property developers, has acquired 6.39 acres of prime freehold land in downtown Kuala Lumpur, at the intersection of Jalan Sultan Yahya Petra (formerly known as Jalan Semarak) and Jalan Padang Tembak for a total consideration of RM384.0 million.
UEM Sunrise signed a Sale and Purchase Agreement with Nipponkey Sdn Bhd ("Nipponkey"), the landowner, with preliminary plans of developing residential products catering to young homeowners and working professionals looking for proximity to the Kuala Lumpur City Centre (KLCC).
The development has an estimated total Gross Development Value of RM1.5 billion and is slated for a 2024 launch.
"The land sits at a very strategic location of just being at the doorstep to the KL City Centre via a short drive along Jalan Sultan Yahya Petra and Jalan Tun Razak. We have observed a high and sustained demand for small to mid-sized products close to KLCC and priced below the RM1.0 million price point.
"We are confident that this development would be a welcomed addition to city dwellers looking for the convenience coupled with the lifestyle that comes with living in the heart of KL," said UEM Sunrise Chief Executive Officer Sufian Abdullah.
The development boasts an unobstructed view of the KL City skyline, including the Titiwangsa Lake Garden. It has excellent connectivity to the other parts of the city via major highways including the Duta Ulu-Kelang Expressway (DUKE), Ampang-Kuala Lumpur Elevated Highway (AKLEH), Maju Expressway (MEX) and the Kuala Lumpur Middle Ring Road 1 (MRR1).
With the eventual opening of the Raja Uda MRT station scheduled for January 2023, which is located 1.5km from the site, residents will enjoy the benefits of being near the city's public transportation rail network.
Residents of the development will also be delighted by the excellent accessibility to the abundance of nearby amenities and conveniences, including shopping malls such as Suria KLCC, Pavilion Kuala Lumpur, The LINC KL and healthcare providers including Kuala Lumpur Hospital, National Heart Institute and Gleneagles Hospital Kuala Lumpur.
With the many embassies and multi-national companies in the nearby areas, residents can also be assured of international and private schools within the 5km radius such as Sayfol International School and the International School of Kuala Lumpur.
The acquisition will be satisfied partly via cash amounting to RM235.8 million with the remaining total consideration anticipated to be settled in-kind via the Company's lands in Gerbang Nusajaya in Iskandar Puteri, Johor measuring 107.82 acres.
The arrangement allows UEM Sunrise to rebalance its landbank portfolio, divesting the lands in Gerbang Nusajaya in exchange for lands located in the Central region that can provide a quick turnaround. The development of this 6.39-acre prime land is anticipated to reinforce and stabilise the Company's future product pipeline in line with its "Triage, Stabilise, Sustain" strategy in transforming the Company into a balanced real estate player.
"We are satisfied with the fair value of the land in Jalan Sultan Yahya Petra, considering the size and its strategic location in addition to a readily available set of plans to kickstart the development. The transfer of the lands in Gerbang Nusajaya to Nipponkey as in-kind payment for the 6.39-acre land, allows us to unlock further value of our lands in Iskandar Puteri. UEM Sunrise remains on a lookout for lands that can provide value to our customers and shareholders while fortifying our launch funnel in the short to medium term," said Sufian.
With the latest addition, UEM Sunrise's total landbank in the Greater Kuala Lumpur area stands at approximately 655.8 acres amounting to an estimated total of RM30.7 billion in Gross Development Value, providing the Company with resilient and sustained growth in the long term.
Located at the intersection of Jalan Sultan Yahya Petra and Jalan Padang Tembak, UEM Sunrise has preliminary plans to develop residential products to suit young homeowners and working professionals looking for close proximity to the KL City Centre.