UEM Sunrise Returns to Profits as Revenues Rise on Gain in Land Sales and Rising Property Sales

KUALA LUMPUR (May 26): Property developer UEM Sunrise Bhd returned to the black in its first quarter ended March 31, 2022 with a net profit of RM19.02 million, compared to a net loss of RM4.32 million. RM which it recorded in the corresponding quarter of last year, as revenue jumped on the recognition of the contribution from the sale of 19 industrial plots to Iskandar Puteri, a sale which it executed in December 2020 .

The improvement in revenue – a 64.8% increase to RM416.45 million from RM252.69 million previously – was also due to higher progress billings and progress in construction of local developments, according to his scholarship record.

In addition to a higher gross margin, its net income was also boosted by its improved share of results from associates and joint ventures, primarily from Nusajaya Tech Park and Horizon Hills in Iskandar Puteri, as well as higher foreign exchange gain. raised.

Thus, it recorded a profit per share of 0.38 sen for 1QFY22, against a loss per share of 0.09 sen for 1QFY21.

Property development activities recorded sales of RM110 million in 1QFY22, 64% contributed to projects in the central region – mainly Serene Heights Bangi, KAIA Heights in Equine Park, Seri Kembangan and Residensi Allevia in Mont’Kiara, the remaining 36% coming mainly from the south of Estuari Gardens, Aspira LakeHomes at Gerbang Nusajaya and Senadi Hills.

Its uninvoiced sales as of March 31 were RM2.2 billion.

Delighted with the group’s return to profit after two years of less than stellar results, EMU Sunrise chief executive Sufian Abdullah said the group aims to remain profitable throughout 2022 and continue to deliver its three-step transformation program to bring UEM Sunrise back to realizing its core value creation potential through real estate development.

Regarding the recent hike in key overnight rates, the group does not expect a significant impact on sales, as the rate is still low compared to pre-pandemic levels. “Additionally, the majority of products available in the market have been priced competitively, while most buyers are owner-occupiers. Taking advantage of the current environment, we are bolstering the launches of our new product pipelines and will continue to provide products that are accessible to our customers, buyers and the market in general,” he added.

Meanwhile, the group plans to continue the rebalancing of its land portfolio and to integrate the sustainable development program within the organization in order to sustain new launches and future products.

Despite the prevailing uncertainties, the group remains cautiously optimistic and maintains its sales and development gross value targets of RM1.5 billion and RM3.3 billion respectively for 2022.

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