UEM Sunrise back to the black with RM20m net profit in Q4

PETALING JAYA: UEM Sunrise Bhd registered a net profit of RM20.08 million for the fourth quarter ended Dec 31, 2018 compared with a net loss of RM50.95 million a year ago in line with higher revenue, lower operating expenditure and favourable share of associates and joint ventures.

In a filing with Bursa , the group said that the operating loss recorded a year ago was due to higher operational expenditure including the marketing and promotional expenses incurred for new launches, Mayfair and Solaris Parq during the third quarter last year.

Revenue for the quarter more than doubled to RM752.79 million from RM303.29 million a year ago thanks to the partial settlement of Conservatory and Aurora Melbourne Central, and completion of Kimlun land disposal.

The contribution from international revenue cushioned the impact of lower revenue from domestic projects derived from Residensi Astrea, Kiara Kasih and Solaris Parq in the central region as well as Serimbun and Aspira Park Homes in the southern region that are still at early stages of its development cycle.

For the ended Dec 31, 2018 (FY18), UEM Sunrise’s net profit more than doubled to RM280.33 million from RM105.57 million a year ago on the back of strong , development cost savings and contribution from non-strategic asset divestment.

Meanwhile, revenue for the year rose 9.9% to RM2.04 billion from RM1.86 billion a year ago.

Property development activities accounted for 70% of the group’s total revenue, with 46% from international projects, 30% from southern region and 24% from central region.

The group also recognised land disposal amounting to RM457.4 million and unbilled sales stood at RM4.4 billion as at Dec 31, 2018.

UEM Sunrise raked in RM1.43 billion worth of property sales last year, exceeding its RM1.2 billion . Most of the sales were from domestic projects with 14% from projects in Melbourne. The group launched projects with total gross development value (GDV) of RM907.9 million last year.

Managing director and CEO Anwar Syahrin Abdul Ajib said the group aims to launch projects with a total GDV of RM1.2 billion this year, focusing on mid-market and reasonably sized pocket launches in mature locations. Its sales target for the year is RM1.2 billion.

It started the year with the launch of Aspira ParkHomes, 162 units of mid-market double-storey homes with GDV of RM101.8 million in Gerbang Nusajaya with further phase planned in the second half of the year.

He said asset divestment will remain one of its key strategies, with land disposal totaling RM457.4 million undertaken in Iskandar Puteri. It has earmarked several non-strategic assets for divestment this year amounting to RM300 million.

Source: The Sun Daily

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