Eupe looks to revenue rebound on the back of successful execution of projects

• Eupe Corp Bhd group managing director, Datuk Beh Huck Lee: With key projects now launched and showing strong performances, we are well on the way to returning to the record revenue and profit levels the company demonstrated prior to COVID.

KUALA LUMPUR (Aug 24): Eupe Corp Bhd remains “on track to return to double-digit revenue and profit growth as it continues to successfully execute its expanded project pipeline”.

This was revealed by group managing director Datuk Beh Huck Lee today at the group’s annual general meeting.

In a media release, Beh mentioned that results for Financial Year (FY2023) “continued to reflect the knock-on effects of delays to project due to COVID-relation disruptions” but proceeds from the sales of Eupe’s third and fourth KL project -- Est8@Seputeh and Helix2@PJ South -- were “now flowing through, on the back of strong sales take-up for both projects (more than 90% at Est8 and 70% at Helix2)”.

With these developments, “revenue and profit-before-tax would rebound in FY2024 and beyond”.

Beh added that Eupe’s project pipeline, and a sustained return to stronger revenue and profit, “would be further underpinned by the group’s two biggest projects to date in its two Property Development regions”.

Circadia@Belfield in Kuala Lumpur will be Eupe’s biggest project in the city so far, while Edgewater in Sungai Petani will have a GDV of more than RM500 million.

“Planning of the both projects, which will offer a mix of commercial and residential Components, are both well advanced, and are expected to be launched in the later part of 2024,” stated the media release.

Eupe’s on-going and future projects now have a combined GDV of more than RM2.8 billion, a doubling of the value of the group’s total project pipeline prior to COVID.

“With key projects now launched and showing strong performances, we are well on the way to returning to the record revenue and profit levels the company demonstrated prior to COVID,” said Beh at the meeting.

Beh highlighted longer-term structural changes in the property sector, beyond the immediate challenges of inflation and cost pressures which the Eupe was successfully addressing.

He also touched on rising expectations among younger home buyer segments, saying they were “creating more complex demands for design innovation and differentiation at competitive pricing”.

“While these are challenges, they are also significant opportunities. Eupe’s approach is to anticipate and lead change. This approach accounts for much of our success to date. I’m confident it will stand us in good stead in what is likely to be a prolonged environment of heightened uncertainty,” he said.

Other key highlights for the group

a) Group revenue for Financial Year 2023 of RM202 million, a 9% decrease on the previous financial year’s revenue outcome. This translated into group pre-tax profit for the financial year of RM37 million, comparable to that recorded for FGY2022.

b) A modest debt ratio of 0.23 times, despite the group funding major land acquisitions for Circadia and Edgewater in Financial Year 2023. This provides a strong platform to fund future land acquisition and project expansion.

c) Current unbilled property sales in excess of RM700 million, providing a strong line of sight to Eupe’s projected rebound in future revenue.

d) Fast-tracking the roll-out of Villa Natura in Sungai Petani, the Northern Division’s current largest residential property project, following the strong response to the launch of the project’s first stage in March 2023.

e) Winning additional national property design awards for its high-rise residential projects in KL, highlighting the group’s strengthening market and brand awareness in the Malaysia’s biggest property market.

New chief financial officer

Beh also stated that Victor Wong who this week joined Eupe as chief financial officer following the retirement of Ng Kee Chye, “would bring to the role a significant amount of high-level experience and expertise in financing, corporate strategy and governance in the property sector”.

Wong joined Eupe from LendLease Malaysia, where he was the Finance and Commercial director at The Exchange TRX.

“Along with the board, I am looking forward to working with Victor to take Eupe to the next level of growth,” said Beh.

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