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.