Profits were driven by strong construction progress of Almas, Residensi Sefina and Estuari Gardens
By RAHIMI YUNUS / Pic By MUHD AMIN NAHARUL
UEM Sunrise Bhd’s first-half (1H) net income improved more than 17-fold on the back of strong local property development and asset divestment.
The property developer, in a Bursa filing yesterday, said net profit for the six-month period ended June 30, 2018 (1H18), surged to RM239 million from RM13.5 million recorded a year ago.
Revenue for the period rose 21.1% year-on-year (YoY) to RM861 million.
UEM Sunrise noted that its property development segment contributed half of the total revenue, with the Almas at Puteri Harbour development in Johor the largest contributor, followed by Residensi Sefina development in Mont Kiara, Kuala Lumpur, and Estuari Gardens in Puteri Harbour.
Sales from its property development for the period amounted to RM663.8 million, 69% higher YoY, of which 45% was contributed by projects in the central region such as the Residensi Solaris Parq in Dutamas, Kondominium Kiara Kasih and Symphony Hills in Cyberjaya.
The southern region contributed 27% of sales from projects such as Serimbun in Iskandar Puteri, Estuari Gardens and Denai Nusantara in Gerbang Nusajaya, while international sales came mostly from its Mayfair project in Melbourne, Australia.
As at June 30, 2018, UEM Sunrise’s unbilled sales stood at RM4.9 billion.
“We are very pleased with our performance for 1H18. Profits have shown improvement compared to the same period last year driven by strong construction progress of Almas, Residensi Sefina and Estuari Gardens, encouraging sales from inventories and realisation of cost savings initiative from various general and projects’ development cost,” MD and CEO Anwar Syahrin Abdul Ajib noted in the statement yesterday.
The RM310 million gain on land disposal to Country View Bhd cushioned the group’s development cycle for Residensi Solaris Parq, Serimbun and Kondominium Kiara Kasih which are still in the early stages, he added.
Asset divestment accounted for 44% of revenue and came from the sale of lands in Iskandar Puteri to Country View and RA Suria Sdn Bhd for RM359 million, which was done in line with the company’s efforts to generate internal funds and increase its presence in the central region through such exercise.
On June 28, 2018, UEM Sunrise acquired a 2.9-acre (1.17ha) land in Mont Kiara, in addition to the 72.7 acres of land acquired in Kepong last April.
Anwar Syahrin said the company is on track to meet the RM1.2 billion sales target as property sales have already exceeded half of the year’s target to date.
He said property sales were boosted by various campaigns such as the “Easy Own Plan” campaign, “A New Year, A New Home” campaign that was launched earlier this year, along with a recent one which was in conjunction with the celebration of the company’s 50 years of community building.
UEM Sunrise is committed to launch RM1 billion worth of properties this year and anticipates further launches in the central region within the mid-market segment.
The company now has about 6,200 acres of land in Iskandar Puteri which is currently in various stages of planning and development.
Its Australian projects such as the Aurora Melbourne Central and the Conservatory are expected to be completed in the third quarter and before the end of the year respectively.
The Mayfair development is slated to break ground next year and is expected to be completed in 2021.