UEM Sunrise posts higher Q2 earnings of nearly RM84m

Anwar Syahrin Abdul Ajib: We are optimistic that we will continue to have a strong presence.

KUALA LUMPUR: UEM Sunrise Bhd recorded a 12.6% increase in net profit to RM83.91mil in the second quarter ended June 30, 2015, compared with RM74.53mil a year ago. 

The group had on Monday attributed the increase to lower expenses, higher income from dividend distribution from a subsidiary under creditors’ voluntary liquidation, and recognition of liquidated ascertained damages receivable from a contractor.

However, revenue fell 16.8% to RM372.32mil from RM447.64mil a year ago due to lower contribution from property development. This is following the completion of Summer Suites at the end of the preceding quarter and Imperia, which is nearing completion.

For the first half, UEM Sunrise’s earnings posted a slight improvement to RM137.05mil from RM136.05mil in the previous corresponding period. 

“The group recorded higher profit from operations despite lower revenue in the current and cumulative quarter mainly due to improved property development margin and higher other income mainly from dividend distribution from a subsidiary under creditors' voluntary liquidation and recognition of liquidated ascertained damages from a contractor in the current period,” it said. 

However, revenue was 7% lower at RM789.76mil. UEM said property development activities contributed almost 91% of the total revenue for the current period. 

“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,” it said.

Total property development sales for the period improved to RM600.4mil from RM438.9mil achieved in 2014 driven mainly by international sales from the Aurora Melbourne Central project in Melbourne, Australia which contributed sales of RM267.3mil for the current period.

Its Residensi22 in Mont’ Kiara has recorded over 90% sales to date. UEM said its unrecognised revenue as at June 30 stood at RM3.8bil.

It will be launching the final phase of industrial lots in Southern Industrial & Logistics Clusters later this year. 

Managing director/chief executive officer Anwar Syahrin Abdul Ajib said although the property market is very challenging at the moment amidst 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”.

He added the company will also leverage on Conservatory, its second project in Melbourne, scheduled for launch in October 2015.

It recently bought a 21-storey office tower in Melbourne for RM161mil and plans to convert it into an ultra-luxurious residential development, with a mix of ground floor retail and serviced apartment components. The office tower, located on the city fringe of St. Kilda Road is 16,000 sq m and is its third property acquisition in the city.