UEM Sunrise returns to profitability in 1Q


UEM Sunrise chief executive officer Sufian Abdullah

PETALING JAYA: UEM Sunrise Bhd returned to profitability 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 a year ago.

Revenue was up by 65% to RM417mil year-on-year. This was supported mainly by local property development activities and the sale of 19 industrial plots in phase three of the Southern Industrial and Logistics Clusters in Iskandar Puteri, Johor, the company said.

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 programmes, 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, it maintains its sales and gross development value targets of RM1.5bil and RM3.3bil, respectively for 2022.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

UEM Sunrise , returns , profitability , property ,

   

Next In Business News

China's central bank renminbi liquidity arrangement includes Malaysia
Global M&A braces for dry spell as boardrooms put expansion on hold
CPO futures market to see technical correction next week
Fed policymakers embrace more rate hikes, markets a little less
Tokyo Gas begins synthetic methane trial using green hydrogen
Bruised US stock investors brace for more pain in second half of 2022
An ‘AAA’ move?
A ‘Volcker recession’ in the making
Real stress hurts bank buybacks
Masayoshi Son’s eternal optimism

Others Also Read