UEM Sunrise’s 2Q earnings grow 12.6%

KUALA LUMPUR (Aug 18): UEM Sunrise Bhd saw its net profit for the second quarter ended June 30, 2015 (2QFY15) rise 12.6% to RM83.91 million or 1.85 sen per share on improved property development margin and higher other income.

The property developer posted a net profit of RM74.53 million or 1.64 sen per share for 2QFY14.

This was despite recording a lower revenue for the current quarter under review by 16.83% to RM372.32 million from RM447.64 million a year ago, primarily due to lower development revenue resulting from the completion of Summer Suites, various phases in East Ledang, Nusa Bayu, Symphony Hills, and lower construction progress of Imperia and Impiana in the current period as the projects are almost completed.

For the six-month period (6MFY15), UEM Sunrise's net profit grew by a marginal 0.74% to RM137.05 million or 3.02 sen per share from RM136.05 million or three sen per share a year ago. However, revenue fell 7% to RM789.76 million from RM849.19 million for 6MFY14.

In a statement yesterday, the group said property development activities contributed almost 91% of the total revenue for 6MFY15. The three major revenue contributors were Teega in Puteri Harbour, Nusajaya, Quintet in Vancouver, Canada, and Arcoris Mont’Kiara, Kuala Lumpur, in line with higher construction progress recorded for the projects.

“Although the property market is very challenging at the moment amid the current global market situation, we are optimistic that we will continue to have a strong presence in the industry bolstered by the strong sales of our new project launches, such as Residensi Sefina Mont’Kiara and Serene Heights in Bangi,” said UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib.

Going forward, Anwar said the group will be launching its second Melbourne project known as the Conservatory by October, comprising 446 units of condominium with an estimated gross development value of A$274 million (RM828 million).

It is also on course to launch the final phase of industrial lots in the Southern Industrial and Logistics Clusters in Nusajaya, Johor, later this year.

UEM Sunrise said these new launches, coupled with the unrecognised revenue from ongoing projects of RM3.8 billion as at June 30, will contribute towards the group's revenue and earnings for this year.

This article first appeared in the digitaledge Daily on Aug 18, 2015. Subscribe here.