KUALA LUMPUR (Nov 23): UEM Sunrise Bhd posted a net profit of RM20.35 million or 0.4 sen per share in the third quarter ended Sept 30, 2022 compared to a net loss RM50.38 million or 1 sen per share in the same period last year on improved revenue contribution from the property development segment.

Its bourse filing on Wednesday (Nov 23) showed quarterly revenue climbed 66.99% to RM355.76 million from RM213.04 million in the same period a year ago helped by local projects namely Residensi Solaris Parq, Residensi AVA, Residensi Allevia and Residensi Astrea in Mont' Kiara in the Central region.

In the Southern region, the main revenue contributors were Senadi Hills Estuari Gardens, Aspira ParkHomes, followed by Teega. Higher settlement from the Australian projects also contributed to the increase in property development revenue.

UEM Sunrise noted the group's operating profit margins in the current quarter improved substantially at 16% compared to prior year's corresponding quarter of -1% partly due to a one-off recognition of other operating income amounting to RM10 million and lower operating expenses due to fewer launches and bad debts recovery from the retail segment.

Another contributing aspect to the profits is the favourable share of results from joint ventures and associates, which was an improvement compared with the same quarter in the prior year mainly from Horizon Hills in Iskandar Puteri and Forest Heights in Seremban.

For the nine months ended Sept 30,2022, UEM Sunrise saw a net profit of RM60.07 million compared to RM62.07 million net loss. Revenue grew 59.08% to RM1.14 billion from RM714.88 million.

In a separate statement, UEM Sunrise said it was able to reduce 43% of its inventories from RM396.9 million as of Dec 31, 2021 to RM227.1 million as of Sept 30, 2022, whilst its cash balances remained strong at RM950.3 million for the same period.

For the remaining quarter of the year, UEM Sunrise will settle the remaining units of Aurora Melbourne Central and Conservatory in Melbourne, and finalise the plans for its next project in Collingwood, Melbourne.

In the local front, Residensi Solaris Parq, which is nearing full take up, and Kiara Kasih in Mont' Kiara, which is fully sold to-date, will be completed before the end of the year.

“We are pleased with our financial turnaround and are on course to remain profitable for this financial year. Our priority for 2023 is to strengthen our product pipeline and focus on property development activities. We will begin our year with launches in the Central region namely THE MINH at Mont' Kiara and our return to the Cheras market, THE CONNAUGHT ONE,” said UEM Sunrise chief executive officer Sufian Abdullah.

Looking ahead, UEM Sunrise said it will continue with its three-pronged strategic turnaround plan, focusing on initiatives under Triage which includes asset monetisation plans, and reinforcement of future pipeline.

The group will also continue to evaluate and acquire other potential landbank, and create new pipelines in order to sustain the group’s non-financial and financial performance in the long term.

UEM Sunrise’s share price settled on Wednesday 5% or one sen higher at 21 sen, bringing the group a market capitalisation of RM1.06 billion.

Source: EdgeProp