UOA Development's 2Q net profit up 80% on revenue from ongoing developments

KUALA LUMPUR (Aug 24): UOA Development Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) surged 80.2% to RM124.2 million or 8.17 sen per share from RM68.9 million or 4.82 sen per share a year ago mainly due to ongoing development projects.

Revenue fell 17.77% to RM294.8 million in 2QFY16 from RM325.7 million last year, it told Bursa Malaysia in a filing today.

"The group's revenue and profit attributable to the company for 2QFY16 were mainly derived from the progressive recognition of its ongoing development projects such as Desa Green Serviced Apartments, Scenaria @ North Kiara Hills, South View Serviced Apartments, Southbank Residence, Sentul Village and The Vertical Office Suites and Corporate Towers," UOA said.

Net profit in the first half ended June 30, 2016 (1HFY16) climbed 49.2% to RM220.3 million or 14.5 sen per share from RM147.4 million or 10.3 sen per share last year whereas revenue dropped 22.4% to RM496 million from RM639.4 million in 1HFY15.

UOA said its total property sales for 1HFY16 was approximately RM611.9 million while unbilled sales as at June 30, 2016 was about RM1.2 billion.

New property sales in 2QFY16 were mainly from projects launched in the financial year ending Dec 31, 2016 (FY16) including United Point Residence in Kepong and Danau Kota Suite Apartment in Setapak.

Sentul Point (formerly known as Desa Sentul Phase 2) is slated for launch in 2HFY16 and is expected to contribute substantially to property sales for the remaining part of FY16.

"The group will continue to focus on development in Greater Kuala Lumpur and source for strategic development lands that meet the criteria," it said.

At 2.40pm, UOA rose 1 sen or 0.42% to RM2.40 with 1.23 million shares transacted for a market capitalisation of RM3.9 billion. — theedgemarkets.com

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