UEM Sunrise’s 1Q net loss narrows to RM4.32 mil on higher revenue, improved forex

KUALA LUMPUR (May 24): UEM Sunrise Bhd saw its net loss for the first quarter ended March 31, 2021 (1QFY21) narrow to RM4.32 million, from RM22.15 million a year ago, underpinned by higher revenue and foreign exchange gain.

The group said revenue rose 29.02% to RM252.69 million, from RM195.85 million in 1QFY20, driven by higher progress billings and construction progress from local developments, mainly Residensi Solaris Parq in Dutamas, Aspira ParkHomes in Gerbang Nusajaya, Serene Heights Bangi and Kiara Kasih in Mont’Kiara, as well as higher sales of Estuari Gardens in Puteri Harbour.

UEM said improvements in the share of results from associates and joint ventures contributed by developments in Horizon Hills and Forest Heights, Seremban helped boost the group's performance.

UEM Sunrise did not declare any dividend for 1QFY21.

Its CEO Sufian Abdullah said in a statement that the group’s performance improved following the positive sentiment of the market, as the public at large learned to adapt to the new normal.

“We have anticipated the growing demand for more competitively priced products and will be launching a series of affordable and more attainable products this year,” he said.

While revenue and sales showed improvements following the positive momentum after the introduction of the recovery Movement Control Order (MCO) in the second half of 2020, the group said its encouraging performance is still at its initial phase.

It said the majority of its projects are newly launched and are at their early stages of construction progress.

Recovery in performance is expected to be more visible in the second half of the year, it said.

According to the statement, UEM Sunrise has so far launched projects with a total gross development value of RM243 million.

Sales picked up in the quarter following the growth momentum in the second half of 2020, improving its property development sales to RM272 million from RM97 million in the same quarter of last year, the group said.

Going forward, UEM Sunrise said its earnings visibility is backed by unbilled sales of RM1.9 billion (as of March 31), which will be substantially recognised over the next 18 to 36 months, depending on projects’ progress completion.

The group said it is cautiously optimistic on the outlook and is maintaining its GDV and sales targets of RM1.2 billion respectively for 2021.

It added that it will be launching projects with a total GDV of RM943 million in the Central Region. As for the Southern region, it will be launching projects with a GDV totalling RM320 million.

UEM Sunrise said it remains financially sound with a cash balance of RM1.5 billion, albeit a slight increase in net gearing of 0.44 times as at the end of March 31, 2021, partly due to additional borrowings raised in the quarter.

UEM Sunrise's share price closed 1 sen or 2.44% higher at 42 sen today, valuing the group at RM2.13 billion.

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