UOA Development 1Q net profit down 71% on-year as revenue falls

KUALA LUMPUR (May 25): UOA Development Bhd’s first quarter net profit fell 70.95% year-on-year to RM36.09 million from RM124.22 million on lower revenue after the property developer recognised, a year earlier, higher progressive income from its United Point Residence project.

In a Bursa Malaysia filing today, UOA Development said revenue fell to RM140.17 million in the first quarter ended March 31, 2021 (1QFY21) from RM375.27 million.

"The lower revenue and gross profit were mainly due to higher progressive recognition from United Point Residence in the corresponding quarter of the previous financial year.

"The group’s revenue and profit attributable to the company for the quarter under review were mainly derived from the progressive recognition of the group’s ongoing development projects namely Sentul Point Suite Apartments, Goodwood Residence, South Link Lifestyle Apartments and Aster Green Residence,” UOA Development said.

UOA Development did not declare any dividend for 1QFY21.

In quarterly terms, UOA Development said the group’s profit before tax (PBT) of RM53.1 million for 1QFY21 was lower than the immediate preceding quarter’s PBT of RM59.3 million. 

"The lower revenue and profit in the current quarter was mainly due to higher progressive recognition from South Link Lifestyle Apartments in the preceding quarter,” said UOA Development, which registered approximately RM80.8 million worth of new property sales during 1QFY21.

The property developer’s unbilled sales as at March 31, 2021 amounted to approximately RM225 million, according to the company.

Looking ahead, UOA Development said the group maintains its focus on property development projects at targeted locations while exploring for strategic development land that meets the objective of the group.

At 5pm today, UOA Development’s share price closed two sen or 1.11% higher at RM1.82, which values the group at about RM3.86 billion.

UOA Development has 2.12 billion issued shares, according to its quarterly financial report.

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