Commenting on the financial results, UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said the company
KUALA LUMPUR: UEM Sunrise Bhd
’s net profit fell by 29.3% to RM37.6mil for its fourth quarter ended Dec 31, 2017, compared with 53.2mil in the same corresponding period last year.
The developer’s revenue rose 20% to RM748.1mil against RM624.6mil a year ago mainly due to higher property development revenue from the progress made by international projects, namely Aurora and Conservatory and the sale of completed units from the group’s inventory monetisation campaign. The group also completed sale of land in Iskandar Puteri, Johor in the current quarter.
UEM Sunrise is proposing a first and final single tier dividend of 1.0 sen per ordinary share of RM0.50 each for the financial year ended Dec 31, 2017.
Its operating profit margin improved to 13% from 9% largely driven from higher contribution from international projects and land sale. Operating profit margin for preceding year’s corresponding period was also affected by the recognition of liquidated ascertained damages.
Despite higher operating profit, the group recorded lower profit before income tax due to share of lower profit from associates and joint ventures and higher interest expenses.
For the full financial year ended Dec 31, 2017 (FY17) , UEM Sunrise’s net profit almost doubled to RM280mil compared with RM147.3mil, supported by strong local and international property development activities.
Its total revenue recorded for the year increased 58% to RM2.9bil compared to RM1.8bil reported for the previous year.
In a statement, UEM Sunrise said property development activities contributed a total of RM2.2bil representing 77% of total revenue for the year, an improvement of approximately 40% compared to the property development revenue in FY16 of RM1.61bil.
The three largest contributors for the year were Aurora Melbourne Central followed by Residensi22 Mont’Kiara and Conservatory. International projects contributed the highest; constituting 43% of property development revenue followed by 35% from the central region and 22% from the south.
The group’s unbilled sales as at Dec 31, 2017 stood at RM4.8bil. The company exceeded its 2017’s gross development value (GDV) target of RM1.7bil having launched a total GDV of approximately RM2bil for the year.
Commenting on the financial results, UEM Sunrise managing director/CEO Anwar Syahrin Abdul Ajib said: “We are very pleased with our performance as the revenue for FY2017 sets a new record high since the company was listed in 2008.
“Property development revenue contributed significantly to the group revenue, charting its highest contribution driven by strong construction progress locally and internationally,” he said.
Anwar added that the group continued to embark aggressively in its asset monetisation and divestment strategy to generate funds required to increase presence in the central region.
“In executing our strategy to rebalance our land portfolio, we have acquired Equine Park land in Seri Kembangan, Selangor measuring 19.2 acres last year. We are currently exploring other opportunities to increase our landbank in the Central region.”
Commenting on the current property market sentiment, “We take full cognisance of the challenges that lie ahead but we remain positive and will continue to leverage on the company’s strategic imperatives for the next 12 to 18 months.
“We will always be on a lookout for opportunities to landbank a sizeable area for a mixed integrated township development in the Klang Valley. Our mission is to develop the next Mont’Kiara but at more affordable prices.”
The company plans to remain prudent in its targets for 2018 despite exceeding its 2017’s sales target. For 2018, UEM Sunrise’s sales target remains at RM1.2bil.
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