UEM Sunrise chief executive officer Sufian Abdullah
PETALING JAYA: UEM Sunrise Bhd
reported a revenue of RM1.3bil for the financial year ended Dec 31, 2023 (FY2023), driven mainly by its developments namely Residensi AVA in Kiara Bay, Residensi Allevia in Mont’Kiara, Serene Heights, and the Southern developments namely Aspira ParkHomes, Senadi Hills and Aspira Gardens, all in Iskandar Puteri.
The company’s gross profit margin improved to 35% in FY2023 (compared to 29% in the corresponding period of 2022), arising from project cost savings from Serene Heights, Solaris Parq and Residensi Astrea in Central and Aspira ParkHomes and Aspira LakeHomes in the Southern region as well as higher margins from land sales recognised in the current year.
In tandem with the outstanding gross profit margin, UEM Sunrise said its operating profit had improved by 11% (compared to FY2022) while profit after tax and non-controlling interests for FY2023 was recorded at RM76mil.
As part of UEM Sunrise’s financial and debt management initiatives and on the back of recent successful capital market issuances, the company remained financially firm, given the gross and net gearing of 0.61 times and 0.45 times, respectively, as of Dec 31, 2023.
The gearing ratio reduced from 0.64 times and 0.48 times, respectively, as of Dec 31, 2022.
The company’s healthy cash balance stands at RM1.1bil as of Dec 31, 2023, whilst unbilled sales of RM2.7bil will be substantially recognised over the next 18 to 48 months.
In FY2023, the company recorded property sales of RM2.1bil, with 49% from Central region, mainly from The MINH in Mont’Kiara, The Connaught One in Taman Connaught, Kuala Lumpur, Residensi ZIG in Kiara Bay, and Intrika in Serene Heights.
While sales from the Southern region contributed about 10%, mostly from the new phases of Senadi Hills in Iskandar Puteri, international projects contributed the remaining 41% of secured sales during the review period with the sale of the Collingwood development in Melbourne, Australia, to Greystar Real Estate Partners amounting to AU$277mil.
The company also declared a dividend of 0.75 sen per share amounting to RM37.9mil for FY2023, to be paid in May 2024. This is equivalent to a 50% dividend payout ratio.
UEM Sunrise said its three-phase strategic turnaround plan: Triage, Stabilise and Sustain has been a game-changer for UEM Sunrise.
“Throughout 2023, the company focused on Triage, which was aimed to strengthen its core business, ensure launch plans were intact and attaining a healthier balance sheet.
UEM Sunrise chief executive officer Sufian Abdullah said the group’s performance demonstrated the effectiveness of the initiatives taken under Triage.
“Our property launches amounted to RM3.6bil in gross development value, which resulted in sales of RM2.1bil and is a substantial improvement compared to the previous year,” he said.
