UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said 2018 saw the completion of several major projects especially in the second half of the year contributing to a stronger revenue compared to last year.
KUALA LUMPUR: UEM Sunrise Bhd
posted a strong set of results for the financial year ended Dec 31, 2018 on stronger earnings growth, cost savings and non-strategic divestment.
The property developer announced on Tuesday that its unbilled sales as at Dec 31, 2018 were RM4.4bil. Property development sales for the year was RM1.43bil, an increase of 19% than its RM1.2bil sales target.
UEM Sunrise said FY18 net profit jumped 165% to RM280.33mil compared with RM105.56mil a year ago on the back of strong revenue growth, development cost savings and contribution from non-strategic asset divestment.
Its revenue increased by 9.9% to RM2.044bil from RM1.860bil due to recognition of ongoing local developments, completion and partial settlement of Conservatory and Aurora Melbourne Central and non-strategic asset divestment.
“Property development activities accounted for 70% of total revenue, an improvement of 14% compared to FY2017 with 46% contributed from international projects followed by 30% from the southern region and 24% central,” it said.
The largest contributor was Conservatory followed by Aurora Melbourne Central, both in Melbourne and Almas in Puteri Harbour, Iskandar Puteri.
“In line with the company’s land portfolio rebalancing strategy, UEM Sunrise has also recognised land disposal amounted to RM457.4mil,” it said.
On its FY18 sales, it said slightly more than half of the sales was contributed from the central region mainly from its developments in Mont’Kiara led by Residensi Solaris Parq, Kondominium Kiara Kasih and the recently launched Residensi Astrea.
Another 32% of the total property sales was from the southern region headed by Serimbun, Estuari Gardens in Puteri Harbour and the company’s first commercial development launched in December last year, 68O Avenue, all located in Iskandar Puteri.
The remaining 14% was from projects in Melbourne, particularly Mayfair. UEM Sunrise launched projects with total Gross Development Value (GDV) of RM907.9mil in 2018.
In the fourth quarter, it posted net profit of RM20.08mil compared with net losses of RM50.95mil a year ago. Its revenue more than doubled to RM752.79mil from RM303.29mil. Earnings per share were 0.44 sen compared with loss per share of 1.12 sen.
UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said 2018 saw the completion of several major projects especially in the second half of the year contributing to a stronger revenue compared to last year.
“We delivered the fully-sold Acacia and Begonia, the first two phases of our prized mid-market residential development in Serene Heights Bangi followed by premium landed Estuari Gardens and high-rise Almas both in Puteri Harbour. In January this year, we completed and delivered Denai Nusantara, a Rumah Mampu Biaya Johor in Iskandar Puteri and plan to deliver Sefina Residences in Mont’Kiara as well as Camellia of Serene Heights Bangi,” he said.
UEM Sunrise said it remains pragmatic in its targets for 2019, despite exceeding sales target of RM1.2bil and achieving RM1.43bil in 2018.
Its unbilled sales as at Dec 31, 2018 were RM4.4bil. Property development sales for the year was RM1.43bil, an increase of 19% than its RM1.2bil sales target.
“Nonetheless, the company is ready to activate further launches for 2019 depending on market conditions and opportunities. Its unbilled sales remain healthy at RM4.4bil as at end of 2018,” it said.
Limited time offer:
Just RM5 per month.
