UOA Development's 1Q net profit down 55% as revenue falls

KUALA LUMPUR (May 22): UOA Development Bhd’s net profit fell 55% to RM43.38 million in the first quarter ended March 31, 2017 (1QFY17), from RM96.08 million a year ago, as revenue declined.

Revenue was down 23% to RM155.09 million, compared with RM201.17 million previously (1QFY16), its Bursa Malaysia filing today showed. 

The group said its revenue and profit for the quarter under review were mainly derived from progressive recognition of its on-going development projects, namely South View Serviced Apartments, Southbank Residence, Sentul Village, United Point Residence, Danau Kota Suite Apartments and Sentul Point Suite Apartments.

The group said its new property sales for 1QFY17 was approximately RM303.2 million, attributable mainly to on-going projects, namely Sentul Point Suite Apartments and United Point Residence.

As at March 31, 2017, the group’s total unbilled sales amounted to approximately RM1.57 billion.

On prospects, the group will continue to focus on developments in Greater Kuala Lumpur, as well as exploring new opportunities for land acquisitions that meet the group's objective.

Earlier today, the group's senior manager Yap Kang Beng told reporters that UOA Development will be launching three new projects before year end, with a combined total gross development value (GDV) of about RM700 million.

UOA Development shares closed up three sen or 1.11% at RM2.73 today, for a market capitalisation of RM4.44 billion. — theedgemarkets.com

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