UEM Edgenta eyes better 2H
KUALA LUMPUR: UEM Edgenta Bhd, which posted a 15 per cent higher net profit of RM62.96 million for the first half of this year, expects its performance for the second half to be better driven by its healthcare and infrastructure sectors.
Managing director/ chief executive officer, Datuk Azmir Merican said the company’s current order book stood at RM13.5 billion, with 29 per cent contributed by healthcare and 67 per cent by infrastructure.
“Some of this work in hand comprises concession businesses, so it will keep us busy for five to 10 years,” he told a media briefing on the group’s first-half performance for the financial year ending Dec 31, 2018.
He said in the healthcare segment, its unit UEMS Pte Ltd continued to deliver a strong record of renewal and retention rate of more than 80 per cent, and has secured new and renewed contracts such as the Sengkang General Hospital In Singapore, as well as the TriServlce General Hospital and Far Eastern Memorial Hospital in Taiwan.
The company’s infrastructure services division, on the other hand, is implementing Performance-Based Contracting ( PBC) in the second half of 2018.
He said this would transform UEM Edgenta’s delivery model for expressway maintenance from an input and resourcebased model to an outcome and performance-based one.
On top of cost efficiency and enhanced service delivery, he said PBC would also put UEM Edgenta on a stronger platform to secure new projects for future growth.
In the real estate sector, UEM Edgenta secured approximately RM47.2 million worth of integrated facilities management as well as energy performance contracts, including Affiniti Medini in Medini lskandar, Johor; Hengyuan Refining in Port Dickson; and Putrajaya Hospital.
“At the same time, we are also working on securing several other 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 added. — Bernama