UOA Development achieves 41% earnings surge in Q2 amidst revenue shifts

UOA Development Bhd (UOADev)saw a 41% surge in net profit for the second quarter ending June 30, 2023 (Q223) amounting to RM63.87 million compared to RM45.3 million during the same period in the preceding year.

In a disclosure to Bursa Malaysia today, the property developer said the substantial growth can be attributed to increased other income, notably bolstered by investment gains.

UOADev reported revenue for the Q223 exhibited a 19% decline, settling at RM98.1 million, a drop from the previous year’s RM121.11 million. 

The company clarified that the revenue change was largely underpinnedOK by the progressive recognition of ongoing development projects, chiefly the Laurel Residence and Aster Hill, in addition to stock sales from The Goodwood Residence and United Point Residence.

For the first half of the financial year, spanning until June 30, 2023 (1H23), UOADev net profit soared 55% to RM109.97 million compared to RM70.69 million reported during the corresponding period in the prior year.

The company’s revenue for the same interval saw a moderate increment of 4%, climbing to RM183.33 million from RM175.69 million.

The company announced a first interim single-tier dividend for the fiscal year culminating on December 31, 2023. 

The dividend amounts to 20 sen per share, translating to a substantial net dividend payable of RM486.16 million. The dates pertaining to entitlement and payment for this dividend will be communicated at a later juncture.

In 1H23, UOADev’s new property sales surged to approximately RM303 million, primarily attributed to the strong demand for The Goodwood Residence, Aster Hill, Laurel Residence, and United Point Residence. 

Furthermore, the company retains a promising outlook with approximately RM285.2 million worth of unbilled sales as of June 30, 2023.

UOADev plans to continue its proactive exploration of strategically aligned development lands, a pursuit that aligns with the overarching objectives of the organisation. 

UOADev gained 2 sen or 1.17% to close at RM1.73 toay, translating into a market capitalisation of some RM4.21 billion.  — TMR / pic BERNAMA