UEM Sunrise to record better 4QFY20 but may still record losses in FY20
KUALA LUMPUR: UEM Sunrise Bhd (UEM Sunrise) has been projected to record a better fourth quarter of financial year 2020 (4QFY20) but analysts also expect the group to still record losses in FY20.
AmInvestment Bank Bhd (AmInvestment Bank) recapped that UEM Sunrise posted a first nine months of FY20 (9MFY20) core net loss of RM134 million, versus a core net profit of RM149.1 million in 9MFY19.
“This was also the first losses incurred since its listing in 2008,” AmInvestment Bank recalled.
The research firm noted that the group’s 9MFY20 revenue dived by 70 per cent year on year (y-o-y) mainly due to a slower project progress completion as a result of the Covid-induced Movement Control Order (MCO).
“Despite a weak 9MFY20, we expect a better 4QFY20 with the recognition of A$125 million (RM365.5 million) from the disposal of Aurora Melbourne Central.
“However, we expect UEM Sunrise to still record losses in FY20 of RM18.5 million, albeit narrower than 9MFY20.”
As such, AmInvestment Bank trimmed its FY21 and FY22 net earnings forecasts to RM93 million and RM116.4 million respectively while assuming a net loss of RM18.5 million in FY20.
Nevertheless, the research firm believed UEM Sunrise’s long-term outlook remained stable premised on the group’s unbilled sales of RM1.7 billion while its FY21-FY22 earnings will be mainly supported by the disposals of land and a higher gross development value (GDV) target of RM1.2 billion in 2021.