UEM Sunrise 3Q net profit jumps 2.4 times

KUALA LUMPUR (Nov 20): UEM Sunrise Bhd, whose third-quarter net profit jumped 2.4 times from a year ago, said it is on track to meet its sales target of RM1.2 billion for the current financial year ending Dec 31, 2017 (FY17).

This is on the back of commendable bookings received for Residensi Solaris Parq, as well as for Dahlia at Serene Heights Bangi, in addition to contributions from its third Australian project, Mayfair at 412 St Kilda Road in Melbourne.

“The total gross development value (GDV) of these projects amounted to RM1.9 billion, exceeding the group’s targeted GDV of RM1.7 billion for 2017,” it said in a filing with Bursa Malaysia yesterday.

The group saw its net profit for the three months ended Sept 30, 2017 (3QFY17) increase to RM86.6 million from RM36.33 million a year ago, on higher contributions from its international projects. Earnings per share also rose to 1.91 sen from 0.8 sen in 3QFY16.

Quarterly revenue grew 69.9% to RM715.77 million in 3QFY17 from RM421.25 million in 3QFY16, driven by the positive progress of its international projects, namely Aurora and Conservatory in Melbourne, Australia, and local projects mainly from Almas and Melia in the southern region, as well as the sale of completed units from the inventory monetisation campaign.

For the cumulative nine months of FY17 (9MFY17), UEM Sunrise saw its net profit surge 2.6 times to RM242.43 million from RM94.01 million in 9MFY16, while revenue climbed 77.1% to RM2.16 billion from RM1.22 billion.

On prospects for the rest of FY17, the group expects to continue with the current performance supported by the expected completion of Residensi 22 in Mont’Kiara and higher completion progress of the international projects in addition to all the other factors outlined above.

The group’s unrecognised revenue stood at RM2.9 billion as at Sept 30, 2017.

UEM Sunrise also said the group recognises the challenges in the property sector as highlighted in the Bank Negara Malaysia Quarterly Bulletin for the third quarter of 2017 and has and will continue to address those challenges by reviewing and consolidating the group’s products in response to the shift in the market.

“In addition, the group will continue its asset monetisation strategy through divestment of the group’s non-core assets to provide it with additional capital resources to secure strategic land banks in the central region,” it added.

In a separate statement yesterday, UEM Sunrise said property development activities contributed 74% of total revenue for 9MFY17.

This article first appeared in The Edge Financial Daily, on Nov 21, 2017.

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