UEM Sunrise Q2 earnings up 73%, boosted by higher revenue

PETALING JAYA: UEM Sunrise Bhd posted a set of commendable results which saw its net profit surged by 73% for the second quarter ended June 30, 2017, boosted by its higher property development revenue.

Net profit for the period stood at RM94.5mil compared with RM54.7mil a year ago. Revenue for the second quarter jumped by 67% to RM897.8mil from RM537.8mil in the same period last year. Earnings per share rose to 2.08 sen from 0.93 sen previously.

For the first six months, total revenue increased to RM1.44bil compared with RM795.6mil in the corresponding period in 2016, an increase of about 81%. 

Profit after tax rose by 170% to RM155.8mil from RM57.7mil previously. Property development activities contributed 67% of total revenue for the current period with the three major revenue contributors being Residensi 22 in Mont’Kiara, Aurora Melbourne Central in Melbourne and Teega in Puteri Harbour.

Projects in the central region contributed the highest; 42% of property development revenue followed by 30% from international projects and 28% from the Southern region. 

Property development sales for the period was RM391.7mil, 46% of which was contributed by the southern region mainly from Estuari Gardens, Melia Residences and Denai Nusantara followed by 32% from the central region, particularly from Symphony Hills, Serene Heights Bangi and Residensi 22 Mont’Kiara. 

The remaining 22% was from the company’s international projects, mostly Conservatory and Aurora Melbourne Central in Australia.  

To date, it has launched projects with total gross development value (GDV) of about RM1.2bil, the latest being Mayfair in Melbourne, Australia
which commands a GDV of RM1.1bil, in addition to a new phase of Serene Heights Bangi, Dahlia in mid-July 2017 and Phase 3E of Melia Residences in early June 2017.

Commenting on the financial results, UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said: “Our revenue of RM1.4bil for the first half of 2017 is the best compared to past years’ corresponding financial period, since the listing of UEM Sunrise in 2008. 

“Notwithstanding the disposal of our Alderbridge lands in Richmond, Canada, contribution from property development revenue has also improved in view of strong construction progress achieved during the period. 

“We expect to see the completion of Residensi 22 Mont’Kiara, Estuari Gardens and Bayu Angkasa apartment, a sub-phase of Nusa Bayu in Iskandar Puteri by year end.”

Teega at Puteri Harbour has been delivered progressively to our buyers since February and the company have also started on the delivery of Arcoris Mont’Kiara’s 262 business suite units starting from end of June, he noted. 

He added that the SOHO units are targeted to be delivered to the buyers in stages starting towards the end of this month whereas the serviced residences are targeted for delivery in the third quarter of 2017. 

The four-star Hyatt House hotel is expected to commence operations in the first quarter of next year, he added.

Anwar said: “Sales from projects in the southern region continue to contribute positively continuing the trend that started in the fourth quarter of 2016. 

“With the right location and product mix, we believe that the market is more receptive on landed mid-market residences. In response to this shift in demand, we plan to launch a new project, Serimbun in Iskandar Puteri, in the fourth quarter of this year. 

“In the central region, we plan to launch a high-rise residential development, Solaris Parq Residences in Solaris Dutamas in October this year.”