“The company’s revenue of RM225.0 million was primarily driven by property development, significantly boosted by project progress.”
KUALA LUMPUR, 29th May 2024 – UEM Sunrise Bhd reported sales of RM232.6 million for the first quarter of 2024 ending March 31, marking a 38% year-on-year increase, or RM64 million. In a media release, the company attributed this growth to strong demand for properties priced between RM500,000 and RM1 million per unit in both the Central and Southern regions.
The company’s revenue of RM225.0 million was primarily driven by property development, with significant contributions from the progress of projects such as Residensi Allevia in Mont’Kiara and KAIA Heights in Seri Kembangan in the Central region, as well as Senadi Hills and Aspira Gardens in Iskandar Puteri.
Revenue was further bolstered by the monetisation of non-strategic land worth RM48 million, aligning with the company’s asset monetisation strategy.
Gross profit decreased to RM70.3 million, representing a 31% gross profit margin, while operating profit reached RM32 million. This decline is attributed to increased selling and marketing expenses for promotional campaigns of ongoing projects and higher project cost savings recognized from completed projects in the same period last year.
“In accordance with these factors, the company reported a reduced profit after tax and non-controlling interests of RM8.2 million for the current quarter. Despite these challenges, UEM Sunrise demonstrated financial resilience with gross and net gearing ratios of 0.62 times and 0.47 times, respectively. Inventories also decreased by 33% year-on-year to RM118 million from RM176 million in the first quarter of 2023, reflecting effective inventory management strategies,” UEM Sunrise stated.
Meanwhile, cash reserves remained strong at RM1 billion as of March 31, 2024, “highlighting the company’s dedication to maintaining a solid balance sheet.”
Unbilled sales amounted to RM2.6 billion, which are anticipated to be largely recognized over the next 18 to 36 months, indicating a stable revenue stream poised for future growth and sustainability.
“Despite a slow start to the year, UEM Sunrise remains resilient and adaptable, seizing growth opportunities. Our strategic emphasis on customer-centric and sustainable developments has significantly driven our performance.
“We are excited to expand our development initiatives with new partnerships, including a 40-acre Renewable Energy (RE) Industrial Park, to further enhance property value in the Southern region,” stated Sufian Abdullah, CEO of UEM Sunrise.
The company intends to progress with its strategic priorities, aligning with its three-phase turnaround plan and the newly introduced U2030 Transformation Plan, aimed at becoming “a balanced real estate player,” according to UEM Sunrise. This approach includes maintaining a disciplined product launch pipeline throughout 2024, targeting a launch gross development value (GDV) of RM0.8 billion. The planned launches will feature products priced between RM500,000 to RM1 million per unit, underscoring the company’s commitment to providing reasonably priced, attainable properties for its customers.
