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May

Kuala Lumpur, 26 May – 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 31 March 2022 (“Q1 FY2022”) today.

For the quarter under review, UEM Edgenta registered a revenue growth of 11.5% to RM539.2 million, compared to RM483.6 million in the previous corresponding quarter (“Q1 FY2021"). The Company also posted a normalised net profit growth of 28.4% to RM10.4 million, compared to RM8.1 million in Q1 FY2021.

The Company’s robust orderbook stands at RM10.8 billion, providing long-term prospects until 2038. UEM Edgenta continued to gain contracts during the quarter and has secured over RM500 million worth of new contracts, achieving ~40% of FY2022 target orderbook replenishment amounting up to RM1.3 billion. International markets contributed ~60% of these new contracts, a testament to the Company’s international market expansion strategy. UEM Edgenta’s Healthcare Support division, particularly commercial contracts, continued to anchor ~66% of these new wins.

“It has been a positive quarter for us with continued growth of our topline and bottom line, and healthy orderbook replenishment, supported by market recovery and our diversification strategy. However, we remain cautiously optimistic on the outlook as the positive prospects driven by the relaxation of international travel restrictions and the nation transitioning towards the endemic phase, are countered by various headwinds, namely global inflationary pressures, supply chain disruption, and market volatility. As an organization, we will continue to innovate and remain agile in responding to these challenges,” said Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta.

Launched a year ago, Edgenta of the Future 2025 (“EoTF 2025”)’s vision is aimed to create a technology enabled solutions company with a focus on healthcare by 2025, through three strategic pillars, namely expand footprint and deepen solutions base, enhance product and technology proposition, and extract value from core businesses. EoTF 2025 has anchored the Company’s multi-pronged diversification strategy across multiple geographies, products and services, and will continue to guide the Company in proactively positioning itself to deliver long-term sustainable growth to its stakeholders.

“As we see the increasing importance of Environment, Social and Governance (“ESG”) agenda globally, it is becoming clear on how we, as a Company, have the foundational capabilities, products and services to empower sustainability in our business strategy and operations, which in return would enable our clients to achieve their ESG targets,” added Syahrunizam.

As for segmental results, under its Asset Management segment – the Healthcare Support division, which presently serves over 300 hospitals in Malaysia, Singapore, Taiwan and India, registered a 13.6% increase in revenue to RM351.6 million, compared to RM309.5 million in Q1 FY2021. Building from our strong orderbook in Singapore and Taiwan, the division recorded a higher net profit of RM21.2 million in Q1 FY2022, compared to RM15.9 million in the same period last year mainly resulting from healthcare support contracts secured in Malaysia, Taiwan, and Singapore. Meanwhile, its Property & Facility Solutions division had a slower start this year and recorded a revenue of RM29.0 million, compared to RM42.6 million in the corresponding quarter in FY2021.

UEM Edgenta’s Infrastructure Services division registered a 21.7% increase in revenue to RM133.1 million in Q1 FY2022 compared to RM109.3 million in the previous year, while its Asset Consultancy division, represented by Opus Consultants, recorded a 30.3% increase in revenue to RM25.5 million compared to RM19.6 million in Q1 FY2021. This is mainly due to higher maintenance work and consultancy works performed for expressways, by Infrastructure Services and Asset Consultancy, respectively due to the ease of movement control order imposed by the Government in the current quarter as compared to the corresponding quarter last year.

Backed by a healthy balance sheet with a low gross gearing ratio of 0.33 times and a strong net cash position and bank balances of RM121.4 million, the Company continues to enhance its delivery models in improving operational efficiency and structural cost optimisation in achieving long term competitive advantage and drive long term sustainability, in manoeuvring a continuing challenging business landscape.

KUALA LUMPUR, 25 May 2022 – UEM Sunrise Berhad ("UEM Sunrise" or the "Company") today announced its financial results for the first quarter ended 31 March 2022. The Company recorded a revenue of RM417 million compared to the first quarter of 2021's revenue of RM253 million, driven by higher progress billings and construction progress from local developments, mainly Residensi Solaris Parq in Dutamas, Aspira ParkHomes in Gerbang Nusajaya, Serene Heights Bangi, Senadi Hills in central Iskandar Puteri, Residensi Astrea in Mont'Kiara as well as the higher sales of Estuari Gardens in Puteri Harbour, in addition to the revenue recognition of the sale of 19 industrial plots in the Southern Industrial and Logistics Clusters, executed in December 2020. 

In tandem with the higher gross profits, together with improvements in its share of results from associates and joint ventures, mainly from Nusajaya Tech Park and Horizon Hills in Iskandar Puteri, as well as the higher foreign exchange gain, UEM Sunrise recorded a significant improvement in its earnings position and revealed a profit after tax and non-controlling interest of RM19 million for this first quarter of 2022; a stark contrast to its performance in the same quarter last year, which reflected a loss of RM4.3 million.

Property development activities recorded sales of RM110 million in the current quarter; with 64% contributed by projects in the Central region mainly Serene Heights Bangi, KAIA Heights in Equine Park, Seri Kembangan and Residensi Allevia in Mont'Kiara, with the remaining 36% from Southern mainly from Estuari Gardens, Aspira LakeHomes in Gerbang Nusajaya and Senadi Hills. It launched the second and final phase of Aspira Gardens in Gerbang Nusajaya featuring 80 units of double-storey clusters and semi-detached valued at RM74 million in March. Its unbilled sales as at 31 March 2022 is RM2.2 billion.

Commenting on the financial results, Sufian Abdullah, Chief Executive Officer of UEM Sunrise said, "We are thrilled to return to the black, and pleased to disclose an improved revenue of RM417 million, which was up by 65% compared to the first quarter of last year, and a profit of RM19 million for the first quarter of this year following two years of less than stellar results”.

He continued, "We target to maintain this profitability position throughout 2022 and continue to carry out the initiatives identified during its Triage period; which is the first of a 3-step transformation program to return UEM Sunrise to realise its core potential in creating value through property development. The period includes streamlining core capabilities, building pipeline of products that deliver value, driving existing launch programs, improving balance sheet quality and returning to profitability. Triage is the initial part of UEM Sunrise's three-pronged strategy to transform the Company into a balanced real estate player. Stabilise which will take place between 2023 to 2025 (reorganisation and transformation of our people, process and portfolio) and Sustain which is 2026 and beyond (income diversification for sustained revenue), should become effective when we have laid a stronger foundation during Triage".

Touching on sales, "In the absence of the Home Ownership Campaign, we have devised sales campaigns of our own starting with the Chinese New Year 'Happy Duo Duo' campaign from 16 January to 22 March 2022, followed by the 'Ini Baru Raya' campaign which takes place from 22 April to 22 June 2022. The campaigns have been effective thus far raking in bookings of approximately RM250 million as at mid-May. Apart from the sales that we have secured from our continuous digital efforts, we see more sales secured from non-digital sources as the economy gradually reopens and the nation shifts to an endemic phase; contributing 58% to our total sales as at 18 May, which is a good sign as buyers are returning to our sales galleries and actively exploring opportunities to buy our properties. In relation to the recent hike in the OPR, we are not expecting a significant impact on sales as the rate is still low in comparison to pre-pandemic level. Furthermore, the majority of the products available in the market have been competitively priced, while most buyers are owner occupiers. Taking advantage of the current environment, we are reinforcing the launches of our new product pipelines and will continue to provide attainable products for our buyers and market at large".

The Company will continue its landbank portfolio rebalancing and embed the sustainability agenda within the organisation to future-proof new launches and future products. It is positive on the nation's transition into endemicity; however, in view of the global political uncertainties which may impede economic activities, and the rising raw materials cost, it retains a cautiously optimistic stance. Despite the challenges, the Company maintains its sales and GDV targets of RM1.5 billion and RM3.3 billion, respectively for 2022.

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