UEM Sunrise profit more than doubles
Property developer’s revenue surges 70%
UEM Sunrise Bhd said strong demand for its property offerings in Australia boosted earnings in the third quarter ended Sept 30, while the domestic market remains challenging.
In a filing with Bursa Malaysia, the property developer said net profit during the quarter under review had more than doubled to RM86.6mil compared with RM36.33mil achieved a year earlier.
Revenue surged by nearly 70% year-onyear to RM715.77mil.
“Our financial performance for the past nine months has been on a growth trajectory ever since we released our first quarter results in May 2017, driven by strong construction progress from the international and local projects, inventory monetisation initiatives and the strategic disposal of our land in Richmond, Canada,” managing director and chief executive officer Anwar Syahrin Abdul Ajib said in a statement yesterday.
UEM Sunrise expects its current financial performance to be sustained for the rest of the year, buttressed by the expected completion of Residensi 22 project in Mont’ Kiara and higher completion progress of its international property projects.
Year-to-date, the company has launched projects with a total gross development value of approximately RM1.9bil, exceeding its target for 2017 of RM1.7bil.
“In view of the challenges in the property sector, the group will review and consolidate its products in response to the shift in the market.
“The group will also continue its asset monetisation strategy through divestment of our non-core assets to provide the group with additional capital resources to secure strategic land banks in the central region,” the company said in a filing with Bursa Malaysia.
“We are on track to meet our sales target of RM1.2bil for the current financial year in view of commendable bookings received for Residensi Solaris Parq, Dahlia@Serene Heights Bangi and Mayfair at 412 St Kilda Road in Melbourne,” stated the company.
As for the first nine months of financial year 2017 (9M17), UEM Sunrise’s net profit more than doubled to RM242.43mil compared to RM94.01mil in the corresponding period of preceding financial year.
The group’s revenue was up significantly by approximately 77.13% at RM2.16bil in 9M17.
Property development activities contributed 74% of total revenue for the period.
The largest contributor was Aurora Melbourne Central in Australia followed by Residensi22 Mont’Kiara in Kuala Lumpur and Conservatory project in Australia.
“Apart from that, the higher revenue was contributed by the sale of completed units from the group’s inventory monetisation campaign and several land parcel sale in Iskandar Puteri,” said the company in its filing with the stock exchange.