UEM Sunrise swings back into profit in 1Q

UEM Sunrise chief executive officer Sufian Abdullah

KUALA LUMPUR: UEM Sunrise Bhd returned to the black in the first quarter ended March 31, 2022 (1Q22) with a net profit of RM19.02mil compared to a loss of RM4.3mil in the same period last year.

The developer’s revenue jumped 65% to RM416.45mil against RM252.7mil.

It said the higher revenue was driven by higher progress billings and construction progress from local developments in addition to the revenue recognition of the sale of 19 industrial plots in the Southern Industrial and Logistics Clusters, executed in December 2020.

Property development activities recorded sales of RM110mil in the 1Q22 with 64% contributed by projects in the central region mainly Serene Heights Bangi, KAIA Heights in Equine Park, Seri Kembangan and Residensi Allevia in Mont'Kiara.

The group added that its future earnings visibility is backed by its unbilled sales of RM2.2bil and it is on track to reinforce launches of new projects in 2022.

Commenting on the results, chief executive officer Sufian Abdullah said the group targets to maintain this profitability position throughout 2022 and continue to carry out the initiatives identified during its triage period, which is the first of a three-step transformation programme to return UEM Sunrise to realise its core potential in creating value through property development".

The triage period includes streamlining core capabilities, building pipeline of products that deliver value, driving existing launch programs, improving balance sheet quality and returning to profitability, he added.

UEM Sunrise said it will continue its land bank portfolio rebalancing and embed the sustainability agenda within the organisation to future-proof new launches and future products.

It is positive on the nation's transition into endemicity; however, in view of the global political uncertainties which may impede economic activities, and the rising raw materials cost, it retains a cautiously optimistic stance.

Despite the challenges, UEM Sunrise maintains its sales and gross development value targets of RM1.5bil and RM3.3bil, respectively for 2022.