Bitten by higher tax, interest cost
> Property developer’s lower Q4 net profit also due to softer gains from associate companies and joint ventures
PETALING JAYA: UEM Sunrise Bhd saw a 29.33% fall in net profit for the fourth quarter ended Dec 31, 2017 to RM37.65 million from RM53.28 million a year ago, due to higher taxation, lower profit from associates and joint ventures and higher interest expense.
The group’s revenue rose by 19.76% to RM748.11 million from RM624.66 million on the back of higher revenue from property development on the back of progress made by its international projects, namely Aurora and Conservatory, the sale of completed units from the group’s inventory monetisation campaign, as well as the completion of a land sale in Iskandar Puteri, Johor, in the quarter under review.
The property developer remains positive for 2018 on the back of its strategic imperatives for the next 12 to 18 months and is targeting to increase its presence in the central region of the Klang Valley via the acquisition of the 19.2acre Equine Park land in Seri Kembangan in December 2017 in addition to delivering strong products in Mont Kiara and Bangi.
Given the market’s interest in affordable and mid-range products, the group also plans to launch such projects in both the central and southern regions of the Klang Valley through Kiara Kasih, a high-rise residential apartment development, and a new phase of Serene Heights Bangi, while in Iskandar Puteri it there will be Serimbun, a landed residential development.
“We will always be on the lookout for opportunities to landbank a sizeable area for a mixed integrated township development in the Klang Valley. Our mission is to develop the next Mont Kiara but at more affordable prices,” said UEM Sunrise CEO Anwar Syahrin Abdul Ajib,
“Meeting the market expectations on supplying affordable and mid-range products is also among our pursuits. Serimbun, with 215 units of double-storey link houses with built-ups ranging from 1,993 to 2,117 sq ft starting from RM630,000 per unit near the matured area of Bukit Indah in Iskandar Puteri, was successfully launched on Feb 10,” he added.
It will continue its asset monetisation strategy, from which it expects to rake in RM310 million from the recent disposal of 164 acres of land to Country View Bhd and RM82 million from the disposal of 29 acres of land to Kimlun Corporation Bhd, in the third and fourth quarters of 2018.
As at Dec 31, 2017, the group’s unbilled sales stood at RM4.8 billion.
UEM Sunrise’s full-year net profit rose 90.14% to RM280.08 million from RM147.30 million. Revenue for the period grew to RM2.90 billion from RM1.84 billion.
The group has proposed a one sen dividend per share for the financial year ended Dec 31, 2017.
On Bursa Malaysia yesterday, UEM Sunrise rose 0.89% to RM1.13 with 671,100 shares traded.