PETALING JAYA: UEM Sunrise Bhd
has reported revenue of RM1.3bil for its financial year ended Dec 31, 2023 (FY23), driven by its property developments.
Among the projects were Residensi AVA in Kiara Bay, Residensi Allevia in Mont Kiara, Serene Heights in the Klang Valley, and Aspira ParkHomes, Senadi Hills and Aspira Gardens, all in Iskandar Puteri, Johor.
The company’s gross profit margin improved to 35% in FY23 (compared with 29% in 2022), arising from cost savings from Serene Heights, Solaris Parq and Residensi Astrea in the Klang Valley and Aspira ParkHomes and Aspira Lake Homes in Johor as well as higher margins from land sales recognised in the period.
In tandem with the outstanding gross profit margin, UEM Sunrise said its operating profit improved by 11% compared with FY2022, while profit after tax and non-controlling interests for FY23 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 ratios decreased from 0.64 times and 0.48 times, respectively, as of Dec 31, 2022.
The company’s cash balance stands at RM1.1bil as of Dec 31, 2023, while 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 the Klang Valley 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 FY23, to be paid in May 2024. This is equivalent to a 50% dividend payout ratio.
The property developer said its three-phase strategic turnaround plan, called Triage, Stabilise and Sustain, had been a game-changer for the company.
Throughout 2023, the company focused on triage, which was aimed at strengthening 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. Our 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.
