UEM Edgenta reports robust 16.2% net profit growth

UEM Edgenta Berhad, the region’s leading asset management and infrastructure solutions company, announced a 16.2% increase in net profit to RM28.6mil in the nine months ended Sept 30, 2023, on the back of a higher revenue of RM2.07bil (RM1.81bil 9M FY2022) – reflecting its resilience and ability to renew and win new contracts from its existing client base as well as new clients and growth markets.

In announcing its unaudited financial results yesterday for the nine-month period under review, the company reported a 14.3% growth in revenue to RM2.07bil (RM1.81bil 9MFY2022) through enhanced technology-enabled solutions, and high-quality service delivery – yielding strong client retention.

UEM Edgenta’s current order book stands at RM9.2bil, of which 67% is contributed by infrastructure services.

As for Q3FY2023, net profit grew by 18.9% to RM5.2mil from RM4.4mil in Q3FY2022 while revenue improved by 11.6% to RM721.1mil driven by effective execution of ongoing contracts by both Singapore and Taiwan healthcare support, and, property and facility solutions (PFS) divisions as well as increased pavement works performed for expressways by infrastructure services.

At the end of Sept 30, 2023, the company’s balance sheet showed a net asset per share of RM1.94, cash and bank balances of RM650.3mil, and a gearing ratio of 0.31 times.

In the first nine months of FY2023, UEM Edgenta secured new contracts totalling RM1.6bil, achieving the company’s FY2023 full-year target in nine months.

The company is maintaining a robust pipeline of contract renewals and new wins in its established markets, namely Malaysia, Singapore, Taiwan, Indonesia, and the United Arab Emirates.

Integration with the new subsidiary in Saudi Arabia – MEEM facilities management company – is on track for the company to pursue the growth opportunities in the kingdom.

‘As we move forward, we remain agile and responsive, leveraging our digital capabilities to adapt to evolving market dynamics and consistently deliver value to our stakeholders,’ says UEM Edgenta managing director/chief executive officer Syahrunizam Samsudin.‘As we move forward, we remain agile and responsive, leveraging our digital capabilities to adapt to evolving market dynamics and consistently deliver value to our stakeholders,’ says UEM Edgenta managing director/chief executive officer Syahrunizam Samsudin.

“With technology reshaping every facet of our business, we continue to allocate resources and invest for growth in areas that enable us to differentiate ourselves by being steadfast in optimising our delivery models and elevating our operational efficiency for customers,” UEM Edgenta managing director/chief executive officer Syahrunizam Samsudin comments on the latest financial results.

“As we move forward, we remain agile and responsive, leveraging our digital capabilities to adapt to evolving market dynamics and consistently deliver value to our stakeholders.”

The healthcare support division has implemented rigorous resources optimisation initiatives through deployment of leading-edge technology and automated work order management to mitigate margin pressure arising from increased market competition and inflationary forces.

It has also expanded its service offerings beyond traditional healthcare support services to cater to a diverse customer base in manufacturing and hospitality sectors, notably in Singapore and Taiwan markets.

The PFS division has also expanded by integrating smart building solutions into clients’ tech ecosystem through the utilisation of Asseto – Edgenta's leading cloud-based asset management system – and its partners’ technology capabilities in enabling data-driven decision-making.

Its focus on data analytics and real-time monitoring has seamlessly aligned with the company’s ESG principles while supporting its customers’ sustainability agenda.

In the Middle East region, its UAE operation has also expanded its service offerings and secured entry into the Abu Dhabi market by winning its first contract with the Abu Dhabi Equestrian Club.

Underscoring the company’s commitment to its sustainability targets, Opus Consultants has been repositioned to be the leading provider of energy and sustainability solutions to capitalise on the emerging green business opportunities stemming from the National Energy Transition Roadmap and the broader infrastructure and healthcare sectors.

On the heels of the net zero launch in September 2023, the RM200mil Zero Capex Fund Programme is ready to be deployed in Sarawak and Peninsular Malaysia by the in-house energy efficiency execution experts, complemented by its partners’ capabilities to provide end-to-end energy and sustainability solutions.

At the same net zero launch event, the company had also set forth a goal to reduce its operational GHG emissions by 26% by 2030 in the medium term and to achieve net-zero emissions by 2050.

“In response to the evolving landscape of our industry, we recognise substantial long-term value and opportunities in the area of IT digitalisation as well as the exploration of new markets,” says Syahrunizam.

“As part of our strategic vision, we have committed significant investments in these areas during the current fiscal period.

“These proactive measures are integral to fortifying our position for sustained growth and resilience in the face of changing market dynamics – ensuring our organisation remains at the forefront of innovation and well-positioned for continued success.”

As for the performance outlook for FY2023, Syahrunizam says: “Markets remain challenging with the high-cost environment driven by escalating cost of materials and manpower.

“While we remain cautious for the remainder of the year, we are continuously driving operating efficiencies and optimising our cost structures to be a ‘fit-for-purpose’ organisation to win and retain customers in the domestic and international markets.

“As we look ahead, to fortify the company’s market positioning, we are actively pursuing both organic and inorganic investments to accelerate growth, and to capture the emerging opportunities timely – ensuring long-term sustainability and value creation for our stakeholders.”

UEM Edgenta is a subsidiary of the UEM Group, and is listed on the Main Market of Bursa Malaysia Securities Berhad (KLSE: EDGENTA). For further information on UEM Edgenta and its initiatives, go to http://www.uemedgenta.com.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Starpicks

Discover a stylish and powerful smartphone experience with the vivo Y100 5G for under RM1,200
Capital A ESG ratings reach soaring heights
Empowering non-fiction writers
Nourishing the future
Malaysia now ranks number one globally for 5G consistency score - Fahmi
Get a UK degree at University of Reading Malaysia

Others Also Read