UEM EDGENTA AIMS TO SUSTAIN STRONG GROWTH IN H2
Infrastructure, healthcare segments set to drive company’s performance, says Azmir
UEM Edgenta Bhd aims to maintain its strong growth momentum in the second half of this year, driven by infrastructure and healthcare segments.
For the first half of the year, the two segments contributed 38 and 46 per cent to the company’s revenue, respectively.
UEM Edgenta managing director and chief executive officer Datuk Azmir Merican said growth in the first half was backed by strong contracts in hand estimated at RM13.5 billion as of June 30, with healthcare contributing 29 per cent and infrastructure and consultancy contributing 67 per cent.
He said the contracts would keep the company busy in the next five to 10 years.
“Revenue from our healthcare segment is expected to be driven by more contracts from the government and private hospitals. “We are also working on securing several sizeable energy performance contracts for a mix of education and industrial facilities in Malaysia, as well as more healthcare facilities in Singapore and Taiwan, as part of our overseas expansion strategy,” he said at a briefing on the company’s financial performance, here, yesterday.
For the first half ended June 30, UEM Edgenta’s net profit increased 37.5 per cent to RM65.1 million, from RM47.4 million in the same period a year ago.
Revenue during the period under
Revenue from our healthcare segment is expected to be driven by more contracts from the government and private hospitals. DATUK AZMIR MERICAN
UEM Edgenta Bhd managing director and chief executive officer
review grew 8.8 per cent to RM1.01 billion from RM925.3 billion previously.
UEM Edgenta has declared an interim dividend of six sen per share, equivalent to RM49.9 million and representing a payout ratio of 79 per cent on the firsthalf results.
Azmir said the group was ramping up the implementation of performance-based contracting (PBC) in its infrastructure business.
He said PBC would transform the group’s current input-based delivery model into an outcomebased one.
“The PBC model has been implemented in developed countries and UEM Edgenta wants to implement it to increase cost efficiency and service delivery, generate innovation and strengthening corporate growth. Beginning next year, all new contracts will be based on PBC,” he added.