UEM EDGENTA BOOSTS NET PROFIT TO RM43.8 MILLION IN FY2021, DECLARES 3.00 SEN DIVIDEND
Summary of FY2021 Financial Results
Revenue of RM2.3 billion
Net profit of RM43.8 million
Resumes dividend payout of a single-tier interim dividend at 3.00 sen per share
Healthy net cash at RM167.8 million
Contract wins in FY2021 stood at RM1.0 billion (approximately ~70% in healthcare support and ~55% from its international businesses)
Full Release: Kuala Lumpur, 24 February – UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the region’s leading Asset Management and Infrastructure Solutions company, boosted its reported net profit to RM43.8 million for the financial year ended 31 December 2021 (“FY2021”), compared to RM14.4 million in the previous year (“FY2020”), thus enabling the company to resume a single-tier interim dividend of 3.00 sen per ordinary share in FY2021.
For the year under review, the Company recorded a revenue growth of 13.0% to RM2.3 billion from RM2.0 billion previously. Normalised net profit in FY2021 expanded to RM57.7 million as compared to RM45.2 million in FY2020.
For the quarter under review (“Q4 FY2021”), the Company recorded a net profit of RM20.7 million on the back of RM699.2 million in revenue, compared to a net profit of RM8.7 million and a revenue of RM571.9 million in the previous preceding quarter (“Q3 FY2021”).
Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said “Our Edgenta of the Future 2025 (“EoTF 2025”) strategy has served us well in 2021 by recalibrating priorities that will continue to help build a sustainable future for the Company. Our relentless focus in expanding our global footprint, disciplined approach in driving cost efficiencies and diversifying into new revenue streams have enabled us to finish the year strong and enter 2022 with future-proof foundation across our operations.”
“We are pleased to be able to resume our dividend payout this year, a testament of our promise to uphold our Company's dividend policy. In line with the dividend pay-out ratio policy of between 50% and 80% of the profit-after-tax and non-controlling interests (“PATANCI”), the Board has declared an interim dividend for the year in appreciation of the continuous support and trust from our shareholders. We will continue our commitment to provide sustainable returns,” he added.
During the year, UEM Edgenta secured new contract wins across multiple geographies, businesses and new sectors, totalling RM1.0 billion, amidst a challenging operating environment, with approximately ~70% in healthcare support and ~55% from its international businesses. Among the new wins were integrated facilities management services contract for Emirates Golf Club and Jumeirah Golf Estates in Dubai; soft services contracts for Taiwan Semiconductor Manufacturing Company in Taiwan, as well as for several hospitals across Singapore and Taiwan.
In spearheading the innovation and technology space, the Company has deployed a number of tech-enabled solutions and services during the year to support its clients, in particular the Ministry of Health Malaysia (“MoH”). These include the introduction of QuickMed and the RFID digital tracker as part of the Home Quarantine Management System (“HQMS”), to assist national recovery efforts in containing further spreads of the new COVID-19 variant.
“We believe our digital products and solutions have contributed to the safe and efficient management of the pandemic, leading to the lifting of various restrictions that have allowed our businesses to progress towards normalcy during the year. We will continue to find ways to innovate and support the Government in its fight against the pandemic, contributing to the further opening of the economy and international borders,” Syahrunizam said.
Additionally, the Company also rolled out its first digital ecosystem, Edgenta NXT, developed IoT-enabled solutions for asset owners such as SmartConnect and productising currently available technology solutions including the Road Asset Management System (“RAMS”) for highway maintenance operations.
On 2022 outlook, the Company remains cautiously optimistic with an anticipated gradual recovery towards a less restrictive COVID-19 operating environment.
“Staying resilient and agile have been central to our success. The Company will continue its efforts in cost optimisation and focus on operational excellence as well as delivering the projects in hand. We remain committed in executing our EoTF 2025 growth strategy with a strong focus on new products and solutions, expansion into new geographies and forging regional partnerships, and at the same time drive sustainability in our operating practices and business offerings,” he said.
Since the onset of the pandemic, UEM Edgenta has been leveraging on its expertise and capabilities in the healthcare support industry as part of its integrated healthcare solutions. The Company’s main performance contributor, its Healthcare Support Services (“HSS”) division registered a 19.4% increase in revenue from RM359.5 million in the previous quarter to RM429.2 million in Q4 FY2021 and a profit-before-tax of RM28.8 million compared to RM28.1 million in the preceding quarter. The division also recorded positive revenue growth of 16.2% from RM1.2 billion in FY2020 to RM1.4 billion in FY2021.
Syahrunizam also said that the Company’s strategy in expanding into the pandemic management solutions and digital healthcare delivery are gaining traction and contributing to the growth in revenue. In FY2022, the HSS division will continue to deliver on its existing contracts, while diversifying its solutions beyond traditional healthcare offerings to support the nation’s efforts in curbing the COVID-19 virus while ensuring peak efficiencies in all hospitals under the Company’s care.
As UEM Edgenta closed the year strong in FY2021 on the back of a market recovery, the Company will continue to focus on driving long-term resilience and sustainability anchored on a healthy orderbook and its EoTF 2025 vision. The Company is actively laying solid foundations across all businesses and remains steadfast in pursuing its growth plans through geographical expansion, new products & services, cost optimisation and tech-enabled solutions.
UEM SUNRISE BERHAD ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021
KUALA LUMPUR, 23 February 2022 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the financial year ended 31 December 2021 (“FY2021”). UEM Sunrise recorded a higher revenue of RM1.2 billion compared to RM1.1 billion for the financial year ended 2020 (“FY2020”) driven by higher construction progress and billings mainly from Residensi Solaris Parq in Dutamas, Aspira ParkHomes in Gerbang Nusajaya, Iskandar Puteri, Serene Heights Bangi and Kiara Kasih in Mont’Kiara in addition to inventory sales of Estuari Gardens in Puteri Harbour, Iskandar Puteri. The completion of the sale of several industrial plots in phase 3 of the Southern Industrial & Logistics Clusters to Pentagon Land Sdn Bhd in December 2020 also contributed towards FY2021 total revenue.
Property sales improved substantially to RM1.5 billion in 2021 compared to RM1.1 billion in 2020, reflecting a positive contribution to unbilled sales and creation of future revenue. 73% of the total property sales was from the collective performance of the Company’s top five properties driven by Residensi AVA in Kiara Bay which saw a significant surge of 347% compared to its sales performance in 2020, followed by Residensi Allevia in Mont’Kiara, Serene Heights Bangi, KAIA Heights in Equine Park, Seri Kembangan and Estuari Gardens. 71% of the total sales for 2021 was contributed by projects in the Central region, with the remaining 29% from Southern.
The Company recorded a loss after tax and non-controlling interests of RM214 million for FY2021 after making impairment provisions for its inventories as well as its assets and properties amounting to RM88 million. These provisions in particular have affected the Company’s margins in the fourth quarter of 2021. Excluding these impairment provisions, UEM Sunrise saw an improvement in operating expenses of 10% compared to FY2020 and an operating profit of RM4.6 million. Favourable contributions from its joint ventures & associates which saw an improvement in FY2021 of RM13 million compared to a loss of RM65 million in FY2020, were also insufficient to cushion operating loss. Note that these impairments have no effect on the Company’s cashflow position.
The current environment of prolonged COVID-19 pandemic and various lockdowns impacted the Company’s operations especially in the second half of the year after the positive movement in the market in the second half of 2020. This was triggered by the imposition of the full movement control order on 1 June 2021 which later transitioned into various phases of the National Recovery Plan or NRP. The environment also affected the market value of several assets and properties requiring these assets and properties to be written down to current market value, significantly affecting UEM Sunrise’s overall profitability. RM550 million worth of properties were launched in 2021 comprising new phases in Serene Heights Bangi and KAIA Heights Tower A and B, both developments in Central. Its unbilled sales as of 31 December 2021 is RM2.4 billion.
Commenting on the financial results, Sufian Abdullah, Chief Executive Officer of UEM Sunrise said, “The circumstances revolving around the pandemic for the past two years have impacted our operations and the way we conduct business. UEM Sunrise was making progress in terms of recovery and was narrowing its losses in the first half of 2021 compared to the same period in 2020. However, the full lockdown imposed on 1 June 2021 compelled the Company to stop construction activities, cease operations of retail complexes and shut down sales galleries. Our product launches were delayed which resulted in only RM550 million worth of GDV launched in 2021”.
He continued, “Our biggest priority for now is to reinforce our product pipeline in making it resilient with a degree of product diversification catering to the current market environment. Plans to organise and systemise our affairs during this ‘Triage’ period are expected to progress until 2023; tackling issues relating to launches, cost efficiencies, prioritisation of projects with high capital outlays and value creations, among others. Hence, we target to launch a total GDV of RM3.3 billion in 2022”.
Touching on its property sales performance, “We are pleased to have exceeded our target of RM1.2 billion and are prepared to target a higher number in 2022 of RM1.5 billion, in line with what we achieved last year. Although we foresee challenges ahead and this includes the absence of the Home Ownership Campaign, the rise in prices of construction materials and the likelihood of an interest rate hike, we feel that property sales in general remains strong premised on our current sales bookings and the type of products we intend to launch this year. Improvements in buying sentiment are expected this year strengthening property sales as buyers continue to be on a lookout for properties leveraging on current property prices and low interest rate; while it still lasts. This is anticipated to improve our current RM2.4 billion unbilled sales, which should augur well for our profit and loss in the coming years”.
“We are also upbeat with Residensi AVA’s sales performance which is 91% sold to-date and look forward to launch the next phase in Kiara Bay. KAIA Heights’ sales are also progressing well alleviated further with the official opening of its sales gallery on 19 January this year. Furthermore, our latest sales campaign; Chinese New Year Duo Duo, which runs from 16 January to 22 March helps maintain interest as we have repackaged our sales incentives for selected products to cater to specific market segments. We will also be launching a product branding series that will cluster our products according to the customer profile, ensuring that there is something for everyone”.
On the Company’s plans in the immediate term, “Our landbanking portfolio rebalancing strategy remains intact. We have identified a few non-strategic lands for divestment this year and continue to source for new landbanks with quick turnaround to create new pipelines. Sustainability also remains a priority. We plan to entrench the ideology throughout the organisation in accordance with a sustainability blueprint aligning it with current global movements and sustainability plans detailed out under the 12th Malaysia Plan. Our gearing as of 31 December 2021 is still at a manageable level of 0.50x. We will try to improve on it over time”.
He further added, “The ‘Triage period’, a crucial part of our three-prong strategy, alongside Stabilise (reorganisation and transformation of our people, process and portfolio) and Sustain (income diversification for sustained revenue) is important for the Company’s performance recovery. The Company has started making great strides on its digital transformation journey with full adoption of Virtual Reality / Augmented Reality and the use of big data analytics to understand go-to-market and customer needs better. Rectification and improvements in key areas are critical for the next stage of the Company’s transformation into a balanced real estate player. Upon overcoming the current challenges, we will be in a better position to create elements to Stabilise and Sustain the Company’s performance”.
PLUS ENCOURAGES HIGHWAY CUSTOMERS TO ENTER HIGHWAY BEFORE 9AM FROM 4TH TO 6TH FEBRUARY ONWARDS
PLUS Malaysia Berhad (PLUS) "Pulang Ke Bandar" or return to Klang Valley Travel Time Advisory (TTA) advises all customers from north and south to enter the highway before 9:00 am for travels between 4th to 6th February 2022.
An increasing traffic trend was recorded on the second day of CNY (February 2nd) when the North-South Expressway saw a surge in traffic from all states. A similar traffic pattern is expected to be repeated this Saturday 5th February and Sunday 6th February as those taking extended off days and school holiday begin their journey back to the Klang Valley.
“We urge the public to plan their safe journey home by following the TTA," said PLUS Chief Operating Officer, Datuk Zakaria Ahmad Zabidi.
PLUS has made preparations to ensure highway customers enjoy a comfortable return journey to the city. Among these are the deployment of additional PLUSRonda teams to assist those who may encounter problems with their vehicles. Through the collaboration with the Traffic Police (PDRM) and Road Transport Department (JPJ) for enforcement along the highway, arranging RELA teams to facilitate traffic management at toll plazas and rest areas as well as providing traffic information updates through various PLUS communication channels, these initiatives are aimed to provide assistance in case of eventualities.
“Make sure that your Touch 'n Go card or Touch 'n Go e-Wallet (for RFID transactions) balance is sufficient to enjoy an interrupted journey at the toll plazas and always adhere to the Covid-19 prevention SOPs at the R&Rs as well as lay-bys. Do use travel apps such as Waze or Google Map to pre-emptively plan your route to avoid traffic congestion along the highway," added Datuk Zakaria.
Access to the latest highway news, traffic situation across the multiple PLUS Malaysia social media platforms such as Twitter, Instagram, Facebook, LinkedIn, YouTube and website www.plus.com.my as well as via the PLUS App, which will help in one’s journey planning.