PETALING JAYA: UEM Sunrise Bhd
has surpassed its 2023 sales target of RM1.5bil earlier than expected and the group expects to be on a “firmer footing” amid a moderate market outlook ahead.
UEM Sunrise, which is in the midst of executing its turnaround plan that involves offloading inventories, non-strategic lands and non-core assets, said its inventories reduced by 33% in the past nine months to RM136mil.
In the coming quarters, the group plans to reactivate more of its remaining land in Johor, according to chief executive officer Sufian Abdullah.
“Our intention is to activate more southern land bank for development, especially with the renewed interest in Johor.
“We have plans to launch more residential projects in Gerbang Nusajaya and new phases within the Estuari, Puteri Harbour, to name a few.
“A new 100-acre mixed development called Puteri Harbour Avenue will also see its first phase launch in 2024,” he said.
As at end-September 2023, UEM Sunrise has recorded property sales of RM1.8bil, with 41% contributed by projects from the central region and 10% by the southern region.
International projects contributed 49% of secured sales.
In the first nine months of 2023, the group has launched projects worth RM3.4bil in gross development value, surpassing its full-year target of RM2.5bil.
UEM Sunrise told Bursa Malaysia yesterday that its net profit for the third quarter ended Sept 30, 2023 (3Q23) fell by 59% year-on-year (y-o-y) to RM8.34mil on higher operating expenses and lower revenue, which declined by 12.2% y-o-y to RM312.35mil.
The developer’s 3Q23 revenue was mainly from property development revenue contribution of Residensi Solaris Parq in Mont’Kiara, which was at advanced stage of progress completion, Serene Heights, Residensi Astrea in Mont’Kiara, Estuari Gardens and Aspira ParkHomes.
Earnings per share in 3Q23 was 0.17 sen. No dividend was declared for the quarter under review.
Cumulatively, in the nine-month period ended Sept 30, 2023 (9M23), UEM Sunrise reported a net profit of RM48.39mil.
This was 19.45% y-o-y lower as compared to RM60.07mil a year earlier.
Revenue in the nine-month period dropped by 19.36% y-o-y to RM917.09mil.
The revenue was partly achieved from the sale of the 19 industrial plots in the Southern Industrial Logistics Clusters and the sale of non-strategic land parcels that collectively contributed 22% or RM246mil of the group’s total revenue.
Land sales contributed another RM127mil.
Despite the lower revenue recorded in the current period, UEM Sunrise recognised higher operating profits contributed by cost savings from completed projects and lower operating expenses compared to the prior year’s corresponding period.
