KUALA LUMPUR (Nov 30): UEM Sunrise Bhd reported a 23% decline in its net profit to RM36.33 million or 0.8 sen per share for the third quarter ended Sept 30, 2016, from RM47.74 million or 1.05 sen per share in the previous year’s corresponding quarter.

Revenue rose 19% to RM421.25 million from RM353.06 million, it said in a filing today.

The higher revenue, it said, was mainly due to revenue contribution from the progress made by its Residensi 22, Serene Heights and Australian projects.

Meanwhile, the group’s bottomline was impacted by higher tax expense of RM18.05 million compared with RM360,000 in the preceding year.

Its profit before tax, however, increased 16% to RM55.58 million from RM48.09 million in the previous year, supported by lower operating expenses.

Net profit for the cumulative nine months fell 49% to RM94.01 million from RM184.79 million in the previous year. Revenue climbed 7% to RM1.22 billion from RM1.14 billion.

UEM Sunrise said the outlook for the local property industry remains challenging amid the subdued global macro environment, high Malaysian household debt, low wage growth and tight lending conditions, which have resulted in higher loan rejection rates.

The group said its performance for the balance of the financial year will be supported by its unrecognised revenue of RM4.1 billion from its existing projects in line with continued construction progress from Teega in Puteri Harbour and Arcoris in Mont’Kiara.

“Notwithstanding the above, the successful launches of Melia Residences in Gerbang Nusajaya, and Camellia, Serene Heights in Bangi in the current year reflect strong market demand for mid-market residential products and the group will continue to focus on offering more mid-market products with unique features in the immediate future.

“In addition, the group is intensifying its effort to reach out to international manufacturing and logistic companies that can create value and enhance the overall development in Iskandar Puteri,” said the group.

UEM Sunrise’s share price fell one sen or 0.95% to RM1.04, giving a market capitalisation of RM4.72 billion. —  theedgemarkets.com

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